What is the cost of the machinery 4 years from now?

A company negotiates an option contract wherein it has agreed to buy a piece of machinery sometime b Show more A company negotiates an option contract wherein it has agreed to buy a piece of machinery sometime between now and five years from now. If the company buys the machinery now the cost will be $50000. If the company buys the machinery at any time other than now the cost will be increased by the inflation rate. If the companys minimum attractive rate of return is 12% per year and the inflation rate is 6% per year What is the cost of the machinery 4 years from now? Show less

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