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