Firm investment in cash and marketable securities

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1. Cristina wants $15,000 saved in 5 years to make a down payment on a house. How much money should she invest now at 7.05% compounded annually in order to meet her goal?

2. Explain the factors underlying a firm’s investment in cash and marketable securities, accounts receivable, and inventory.

3. Landon and Wendy have a new grandson. How much money should they invest now so that he will have $58,000 for his college education in 18 years? The money is invested at 7.3% compounded semiannually.

Reference no: EM131945588

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