Leberland Corporation deposits $100,000 every year in a savings account (beginning at the end of the current year) for the next eight years so that it can purchase a new piece of machinery at the end of eight years. The interest rate is 5%. How much money will Leberland Corporation have at the end of eight years?Use the future value of an ordinary annuity factor table shown below to derive your answer.Excerpt from future value of an ordinary annuity factor table Periods 3% 4% 5% 6% 1 1.00000 1.00000 1.00000 1.00000 2 2.03000 2.04000 2.05000 2.06000 3 3.09090 3.12160 3.15250 3.18360 4 4.18363 4.24646 4.31013 4.37462 5 5.30914 5.41632 5.52563 5.63709 6 6.46841 6.63298 6.80191 6.97532 7 7.66246 7.89829 8.14201 8.39384 8 8.89234 9.21423 9.54911 9.89747 9 10.15911 10.58280 11.02656 11.49132 10 11.46338 12.00611 12.57789 13.18079 Group of answer choices $954,911 $477,456 $431,013 $215,507
Leberland Corporation deposits $100,000 every year in a savings account (beginning at the end of the current year) for the next eight years so that it can purchase a new piece of machinery at the end of eight years. The interest rate is 5%. How much money will Leberland Corporation have at the end of eight years?Use the future value of an ordinary annuity factor table shown below to derive your answer.Excerpt from future value of an ordinary annuity factor table Periods 3% 4% 5% 6% 1 1.00000 1.00000 1.00000 1.00000 2 2.03000 2.04000 2.05000 2.06000 3 3.09090 3.12160 3.15250 3.18360 4 4.18363 4.24646 4.31013 4.37462 5 5.30914 5.41632 5.52563 5.63709 6 6.46841 6.63298 6.80191 6.97532 7 7.66246 7.89829 8.14201 8.39384 8 8.89234 9.21423 9.54911 9.89747 9 10.15911 10.58280 11.02656 11.49132 10 11.46338 12.00611 12.57789 13.18079 Group of answer choices $954,911 $477,456 $431,013 $215,507
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
Related questions
Question
Leberland Corporation deposits $100,000 every year in a savings account (beginning at the end of the current year) for the next eight years so that it can purchase a new piece of machinery at the end of eight years. The interest rate is 5%. How much money will Leberland Corporation have at the end of eight years?
Use the future value of an ordinary annuity factor table shown below to derive your answer.
Excerpt from future value of an ordinary annuity factor table
Use the future value of an ordinary annuity factor table shown below to derive your answer.
Excerpt from future value of an ordinary annuity factor table
| Periods | 3% | 4% | 5% | 6% |
| 1 | 1.00000 | 1.00000 | 1.00000 | 1.00000 |
| 2 | 2.03000 | 2.04000 | 2.05000 | 2.06000 |
| 3 | 3.09090 | 3.12160 | 3.15250 | 3.18360 |
| 4 | 4.18363 | 4.24646 | 4.31013 | 4.37462 |
| 5 | 5.30914 | 5.41632 | 5.52563 | 5.63709 |
| 6 | 6.46841 | 6.63298 | 6.80191 | 6.97532 |
| 7 | 7.66246 | 7.89829 | 8.14201 | 8.39384 |
| 8 | 8.89234 | 9.21423 | 9.54911 | 9.89747 |
| 9 | 10.15911 | 10.58280 | 11.02656 | 11.49132 |
| 10 | 11.46338 | 12.00611 | 12.57789 | 13.18079 |
Group of answer choices
$954,911
$477,456
$431,013
$215,507
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