5. In eighteen years, you require an annuity stream of income that will pay out $100,000 per year for 6 years. You wish to create this annuity stream by putting away a single lump sum today. If your investments will make an average of 7% per year in interest, how much do you need to invest today? (draw the cash flow diagram to help with your calculation)

5. In eighteen years, you require an annuity stream of income that will pay out $100,000 per year for 6 years. You wish to create this annuity stream by putting away a single lump sum today. If your investments will make an average of 7% per year in interest, how much do you need to invest today? (draw the cash flow diagram to help with your calculation)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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