How much should be set aside each year

Reference no: EM131956012

Question: A civil engineering consulting firm needs to purchase $400,000 (constant-value dollar) worth of software 5 years from now. The market interest rate is 10% and the inflation rate is 2.5%. How much should be set aside each year for 5 years? What is the payback period? Why is it not a suitable measure for project election?

Reference no: EM131956012

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