Question
Your company is planning fund the installation of a new process line by cutting the current operating budget and depositing the savings into an account
Your company is planning fund the installation of a new process line by cutting the current operating budget and depositing the savings into an account with an annual interest rate of 1.2% compounded daily. If the new process line will cost $1,750,000 one year from today, then by what amount must the current operating budget be reduced?
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Valuation The Art and Science of Corporate Investment Decisions
Authors: Sheridan Titman, John D. Martin
3rd edition
133479528, 978-0133479522
