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Problem MEX-01 [Points: 1/4). Kroger wants to open a store for the public in 3 years but needs to invest in the construction during this
Problem MEX-01 [Points: 1/4). Kroger wants to open a store for the public in 3 years but needs to invest in the construction during this period of time. Kroger's financial department will be making yearly constant payments to the contractors for the amount of $500,000 starting next year using a fund that pays 6% interest rate per year. How much should be the constant revenue in sales per year after the store opens the doors to the public in order to recover the investment in a 4-year period of opening the store when the interest rate of the money coming from Kroger sales is 8% per year? Tip: Draw a cash flow diagram, then disassemble the problem in two stages
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