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Longhorn fabricators inc. plans to expand

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Longhorn Fabricators Inc. plans to expand its metals-forming facility over the next 5 years. The company will add 20,000 square feet to its 100,000-square foot plant as it adds robotic welding units, additional laser technology, and automated loading facilities. Construction at the plant is expected to start by the end of next year. The company expects to pay 5 equal payments of $250,000 every 12 months over the next 5 year period. What is the future value of the total improvement cost, if the interest rate is 18% per year, compounded every 12 months?

Reference no: EM13661150

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