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Joan Wallace, corporate finance specialist for Big Blazer Bumpers, has been charged with the responsibility of funding an account to cover anticipated future warranty costs.
Joan Wallace, corporate finance specialist for Big Blazer Bumpers, has been charged with the responsibility of funding an account to cover anticipated future warranty costs. Warranty costs are expected to be $5 million per year for three years, with the first costs expected to occur four years from today. How much will Joan have to place into an account today earning 10 percent per year to cover these expenses?
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