Maintenance costs for the fermentation units

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a. Maintenance costs for the fermentation units in a Kalona biofuel production plant are expected to be $80,000 three years from now and another $95,000 six years from now. If Kalona biofuel product plant wants to set aside enough money now to cover these costs, how much must be invested at an interest rate of 8% per year compounded semiannually?

b. An interest rate of 12% per year compounded quarterly is equivalent to what effective interest rate per year?

Reference no: EM131241670

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