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Moving to another question will save this response. Question 3 Question 3 of 23 Next Questio 5 points Saver Company Shoes, In
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Answer #1

a)

FV = PV x (1+r)n

FV at the end of 4th year of Intial Investment = 90000 x (1.10)4

=90000 x 1.4641

= 131769

b)

FV = PV * ([1 + I]n-1/ r

FV of Annual operating cost at the end of 4th year = 10600 x (1+0.10)4-1 / 0.10

= 10600 x (1+0.1)4-1/0.10

= 49194.6

therefore total future worth (a+b) = 131769+49194.6

=180963.6

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