Question
Limitless Ltd. is planning to buy a new warehouse to store its production output. The investment would require 500,000 to be paid upfront. Thanks to
Limitless Ltd. is planning to buy a new warehouse to store its production output. The investment would require 500,000 to be paid upfront. Thanks to the new warehouse, the company expects to increase its profits by 120,000 annually for the next five years, and then 60,000 for the following five years.Suppose that, instead of paying the initial 500,000 now, Limitless Ltd. decides to pay it in equal instalments over the next 10 years.
How much would the company need to pay each year to make all these payments equivalent to 500,000 today?
Need explanation not on paper or image typed calculation only.
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