What would be sufficient amount to cover the future costs

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Mine Reclamation is scheduled to begin five years from today and will require a sustained period of investment amounting to 3.5 million dollars per year for three years at the end of years 5, 6, and 7. What amount would you need to invest today in order to set asside sufficient funds now to meet the future obligations? Assume your money could earn 5.0% per year in low risk securities in the 7 year period in question. Using that same amount, what amount, invested each year for the next 4 years would be sufficient to cover the future costs at the end of years 5 through 7.

Reference no: EM13189968

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