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You company wants to take a space they already have, and re-tool it to produce pre- fab sheds. The total cost of that space when
You company wants to take a space they already have, and re-tool it to produce pre- fab sheds. The total cost of that space when it was constructed back in 1996 was $1.6 million. Back in 1996, the company also put aside the same amount of money to be used when the warehouse was repurposed (so put aside another $1.6 million. If your company is planning on performing this re-purposing in the year 2,022, and inflation from 1995 to 2,022 has been an average of 2.5% per year, and the company has been investing at a market interest rate of 8% per year: Determine how many actual dollars in 2,022 their investment will be worth. Enter your answer in the box below in dollars (minus the dollar sign, so $1000 would be entered as 1000) In your dropbox submission, identify i, f, and i* as well. Hint: consider when they plan to build in order to determine the duration of your analysis
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