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EEM, INC Has a $1,000,000 Debt Outstanding That Is Due

Question 31

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EEM, INC has a $1,000,000 debt outstanding that is due after 15 years. The contract requires that after five years, the firm must set aside annually an amount so the debt is retired in full at maturity. If EEM can earn 8 percent on invested funds, how much must the company set aside each year?

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