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Holiday tours ht has an employment contract with its newly

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Holiday Tours (HT) has an employment contract with its newly hired CEO. The contract requires a lump sum payment of $23 million be paid to the CEO upon the successful completion of her first three years of service. HT wants to set aside an equal amount of money at the end of each year (for 3 years) to cover this anticipated cash outflow. If the savings will earn 7.5 percent per year, how much must HT set aside each year?

Reference no: EM13622709

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