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You are the CFO of St. Elsewhere Hospital. St. Elsewhere is undertaking a major renovation project. Total construction costs will be $50,000,000. You will have

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You are the CFO of St. Elsewhere Hospital. St. Elsewhere is undertaking a major renovation project. Total construction costs will be $50,000,000. You will have to pay your contractors $10,000,000 one year from now; $30,000,000 2 from now and 3 years from . You are putting the cash into an investment account today that will eart 8% per year, compounded annually, to cover these construction costs. a) Draw the timeline b) How much do you have to put into the account today to be able to make your contractor payments? (You can use tables, excel or formulas to calculate this. Your choice.)

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