How much money does the clinic need to set aside today

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Reference no: EM131063350

Columbus Clinic expects to receive $20,000 five years from now. As part of another contract, the clinic must make a payment of $30,000 on a loan six years from now. The clinic wants to set aside an amount today that, combined with the money received, will cover its obligation of $30,000. Assume that the clinic’s cost of capital is 7%. To the nearest hundred dollars, how much money does the clinic need to set aside today?

$5,700

$7,971.94

$5,916.98

None of the above

Reference no: EM131063350

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