Winston Enterprises Would Like to Buy Some Additional Land and Build

question 81

Multiple Choice

Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $136 million. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for the entire expansion project. Management has decided to save $450,000 a month for this purpose. The firm earns 6% compounded monthly on the funds it saves. How long does the company have to wait before expanding its operations?

• A) 184.61 months
• B) 199.97 months
• C) 234.34 months
• D) 284.61 months
• E) 299.97 months

---

Definitions:

Free Legal Services

Legal advice, representation, or other legal work provided without charge to individuals who cannot afford to pay for such services.

Power

The capability to shape or control the actions of others or the direction of occurrences.

President

The elected head of a republican state or organization, often the highest executive officer with significant leadership responsibilities.

Salutation

A greeting used in letters or communication, often formal, such as "Dear" or "To whom it may concern."