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A private school has just received a donation for 65000 as wekk as the promise of another 50000 contribution in one year.
The contributions will be invested in an account earning j12=3.6% until needed for the purchase of new equipment.
The money will be withdrawn in two equal amounts. The first withdrawl will be in 3 years and the second will be in 5 years.
Calculate the amount of each withdrawl
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What considerations might lead Anderson and White to disagree about the desirability of using short-term sources of funds to finance the plant expansion? What other sources of short-term funds might the firm consider using to finance the plant expans..
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