Acceleron is planning future expansion with a new facility in Indianapolis. The company will make the move when its real estate sinking fund has a total value of $1.2 million. If the fund currently has $400,000 and the company adds $50,000 per year, how many years will it take for the account to reach the desired value? The fund earns interest at a rate of 10% per year.

Acceleron is planning future expansion with a new facility in Indianapolis. The company will make the move when its real estate sinking fund has a total value of $1.2 million. If the fund currently has $400,000 and the company adds $50,000 per year, how many years will it take for the account to reach the desired value? The fund earns interest at a rate of 10% per year.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 5EB: A grocery store is considering the purchase of a new refrigeration unit with an Initial Investment...

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