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Fraser Company will need a new warehouse in eight years. The warehouse will cost $430,000 to build. Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company Invest now to have the $430,000 available at the end of the eight-year period? Assume that the company can Invest money at: (Round your final answer to the nearest whole dollar amount.) 1. Four percent 2. Eight percent Present Value

Fraser Company will need a new warehouse in eight years. The warehouse will cost $430,000 to build. Click here to view Exhibit 128-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company Invest now to have the $430,000 available at the end of the eight-year period? Assume that the company can Invest money at: (Round your final answer to the nearest whole dollar amount.) 1. Four percent 2. Eight percent Present Value

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Fraser Company will need a new warehouse in eight years. The warehouse will cost $430,000 to build. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company Invest now to have the $430,000 available at the end of the eight-year period? Assume that the company can Invest money at: (Round your final answer to the nearest whole dollar amount.) 1. Four percent 2. Eight percent Present Value
Transcribed Image Text:Fraser Company will need a new warehouse in eight years. The warehouse will cost $430,000 to build. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company Invest now to have the $430,000 available at the end of the eight-year period? Assume that the company can Invest money at: (Round your final answer to the nearest whole dollar amount.) 1. Four percent 2. Eight percent Present Value
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