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# \$10.00Corporate Finance - chapter 4 questions

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Calculating the Number of Periods. You expect to receive \$25,000 at graduation in two years. You plan on investing it at 9 percent until you have \$160,000. How long will you wait from now? (Better than the situation in Question 9, but still no Ferrari.

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Preview: ... (1+0.09)^n=160000/25000 (1+0.09)^n=32/5 (1.09)^n=32/5 take logs of both sides: log[(1.09)^n]=log(32/5) use log rule: n ...

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Preview: ... The formula we will use for accumalation at 9% if FV = 160,000 = 25,000(1+0.09) n. where n is the numbe ...

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Preview: ... attach ...

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