Find present value of the future cost by savings explorer


Solve the below problem:

Q: A planned factory expansion project has an estimated initial cost of $800,000. Based on a discount rate of 20 percent, the present value of the future cost by Savings Explorer from the expansion is $843,000.

Required:

To yield exactly a 20 percent return on investment, the actual investment expenditure should not exceed the $800,000 estimated cost by more than what amount?

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Accounting Basics: Find present value of the future cost by savings explorer
Reference No:- TGS02029147

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