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In: Economics

How much money can a production company that makes fluidized bed scrubbers spend now instead of...

How much money can a production company that makes fluidized bed scrubbers spend now instead of spending $190,000 in year 5 if the interest rates are estimated to be 9% per year in years 1 to 3 and 16% per year in years 4 and 5?

The company can spend $___________ .

Solutions

Expert Solution

Amount the Company can spend now instead of spending in the fifth year

=190000/((1.09^3)*(1.16^2))

The company can spend $109033.0419

Rahul Sunny answered 2 years ago
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