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If Project A is completed today, its required payment is $90,000. However, investors decided to pay off the project only at the end of year
If Project A is completed today, its required payment is $90,000. However, investors decided to pay off the project only at the end of year 3. The required payment for the project will increase by 4% every year. With this in mind, the investors will deposit an investment amount to a bank account with an interest rate of 7% per year. The deposits will occur at the end of year 1, year 2, and year 3, respectively. Information about this project is shown in the figure below:
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