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How long does the company have to wait

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Question - Vancouver estate would like to purchase extra piece of land and develop a new community and recreational center. The anticipated total cost is $12.4 million. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for the entire construction project. Management has decided to save $235,000 a month for this purpose. The firm earns 7 percent compounded monthly on the funds it saves. How long does the company have to wait before expanding its operations?

Reference no: EM133069121

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