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You have been hired by Tesla to manage its pension fund obligations. You estimate that the firm will have an obligation to pay out a

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You have been hired by Tesla to manage its pension fund obligations. You estimate that the firm will have an obligation to pay out a lump sum (one time payment) of $50M in 10 years. The interest rate that you can make on your investments (savings) currently is 8 percent. Suppose that you set aside (and invest) $1,000,000 each year for the first five years, how much would you need to set aside each year over the remaining years (6 through 10) to have $50M at the point when you need to pay the pension obligation (ie, in 10 years from now)? Select one: O a. $7,053,495 O b. $969,901 O c. $1,996,355 O d. $9,000,000

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