The aggarwal corporation needs to save $10 million to retire a $10 million mortgage that matures in 10 years. to retire this mortgage, the company plans to put a fixed amount into an account at the end of each year for 10 years, with the first payment occuring at the end of 1 year. the aggarwal corporation expects to earn 9 percent annually on the money in this account. what equal annual contribution must it make to this account to accumulate the $10 million in 10 years?

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?