Effective long term planning

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ACME Refining is known for effective long term planning. its major facility, #1, will be decommissioned beginning in 25 yrs. the cost for decommissioning will begin, at the end of 25 yrs, with a cost of 6.5 million, and this cost increases by7% each year for 15 years, at which point the decommissioning will be complete. Acme will establish a major fund to pay for this activity. how mush money must be in this fund, at the end of year 25, so the decommissioning expenses can be paid in the account? assume account earns an annual return of 10%

Reference no: EM131016168

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