How much money should wiley coyote set aside now

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Reference no: EM132057126

Wiley Coyote plans to invest in the "Catch RR" project. He expects the project to be a perpetually long project. His investment plan is shown in the table below.

At a 2% interest rate, how much money should Wiley Coyote set aside now in order to sustain this perpetual project?

Draw a CFD

	Amount	Year incurred
Initial Cost	$300,000	Year 0
One time upgrade cost	$120,000	Year 15
Annual Operation and Maintenance	$1,500	Every year forever
Major Maintenance Costs	$10,000	First in year 10, then every 10 years

Reference no: EM132057126

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