FIN3373 - Columbus Clinic expects to receive $20,000 five years from now.
Question # 00570362
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Updated on: 08/03/2017 04:05 AM Due on: 08/03/2017
Columbus Clinic expects to receive $20,000 five years from now. As part of another contract, the clinic must make a payment of $30,000 on a loan six years from now.
The clinic wants to set aside an amount today that, combined with the money received, will cover its obligation of $30,000. Assume that the clinic’s cost of capital is 7%.
To the nearest hundred dollars, how much money does the clinic need to set aside today?
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Rating:
/5
Solution: FIN3373 - Columbus Clinic expects to receive $20,000 five years from now.