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A car manufacturer gave the green light to design and test a new-concept self-driving car with revolutionary energy-savings and safety features. The project will start
A car manufacturer gave the green light to design and test a new-concept self-driving car with revolutionary energy-savings and safety features. The project will start 2 years from now and will last 5 years. At the beginning of each year of the project, the company must have $1 million available to pay for that year's expenses. To guarantee the availability of funds for each year of the project, the company's CFO decided to invest some of the company's available cash now (i.e., 2 years before the start of the project) in an investment opportunity paying 5% interest rate per year. How much should the investment be
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