Leon Bowie is trying to determine the amount to set aside so that he will...
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Accounting
Leon Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 5 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 5 years, by conducting some research online, Leon has developed the following estimates. Engine Overhaul Estimated Cash Outflow Probability Assessment $320 10% 450 30% 710 50% 840 10% Click here to view factor tables How much should Leon Bowie deposit today in an account earning 8%, compounded annually, so that he will have enough money on hand in 5 years to pay for the overhaul? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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