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a) Maintenance costs for pollution control equipment on a pulverized coal cyclone furnace are expected to be exist80,000 two years from now and another exist90,000 four years from now. If Monongahela Power wants to set aside enough money now to cover these costs, how much must be invested at an interest rate of 12% per year compounded quarterly?

b) An interest rate of 16% per year compounded quarterly is equivalent to what effective interest rate per year?

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Financial Management, Finance

Category:- Financial Management
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