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Question 5 You plan to replace a $250,000 piece of equipment in 5 years. You want to ensure that you can pay for the equipment
Question 5 You plan to replace a $250,000 piece of equipment in 5 years. You want to ensure that you can pay for the equipment in cash. If your bank savings account pays 12% annually, about how much do you need to invest today in order to have $250,000 in 5 years? (Hint: Be sure to use a present value factor table.)
$21,000
$50,000
$123,000
$142,000
$167,941
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