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Starr Company decides to establish a fund that it will use 1 year from now to replace an aging production facility. The company will make
Starr Company decides to establish a fund that it will use 1 year from now to replace an aging production facility. The company will make a $94,000 initial contribution to the fund and plans to make quarterly contributions of $50,000 beginning in three months. The fund earns 4%, compounded quarterly. (PV of $1, FV of $1. PVA of $1, and FVA of$1) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answer to the nearest whole dollar.) What will be the value of the fund 1 year from now? Answer is complete but not entirely correct. Table Values are Based on: Present Value Table Factor Future Value 1.1249$ 105,741 156,080 261,821 $ 94,000 Initial Investment Periodic Investments Future Value of Fund 50,000 03.1216
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