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You are the finance manager for a particular company. The company plans to purchase $2,000,000 in new assembly the machinery in 5 years. (Use Table
You are the finance manager for a particular company. The company plans to purchase $2,000,000 in new assembly the machinery in 5 years. (Use Table 11-2 and Table 1.1-2. Round your answers to (a) How much (in must be set aside now at os interest compounded semiannually to accumulate the $2,000,000 in 5 years? the nearest cent.) (b) of the inflation rate on this type of equipment is 5% per year, what will be the cost (in %) of the equipment in 5 years, adjusted for inflation? (c) Use the inflation-adjusted cost of the equipment to calculate how much in s} must be set aside now (a) Use the present value formula to calculate how much in $) would be required now if you found a bank that offered interest compounded daily to obtain the value found in part blonore leap years in calculation) $
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