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Please answer in detail, thank you! 1. Project X, as it's known at your company, is expected to be in development for four more years.
Please answer in detail, thank you!
1. Project X, as it's known at your company, is expected to be in development for four more years. In the fifth year it will be rolled out across North America and is expected to generate profits $77 million per year for about eight years. After that... who knows? The average interest rate over the entire period in question is expected to be 8%. Given current expectations for the project, what is the present value of the anticipated profits? 2. Your older sister just had a baby. It's a girl! Your sister has decided to start a university tuition fund for this little daughter. She's setting aside $2500 per year every birthday starting today, in factup through the baby's 18th birthday. Once the final birthday payment is made on your niece's 18th birthday, how much will be in the fund, assuming the money can be invested at 5%Step by Step Solution
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