A firm has lost a product liability lawsuit and its funding commitment to victims is as follows:
- An immediate payment of $2 Million.
- On each of the next 8 anniversaries of the verdict, an additional $2 Million payment.
- On the 9th anniversary of the verdict, a payment of $12 Million, which will be available to pay existing claimants and/or any future claimants not known today.
Today	1	2	3	4	5	6	7	8	9
$2,000,000	$2,000,000	$2,000,000	$2,000,000	$2,000,000	$2,000,000	$2,000,000	$2,000,000	$2,000,000	$12,000,000
Eager to put the matter behind it, the firm announces that it has set up a guaranteed-return investment trust which will generate an annual 4% after-tax return.
Further, it will this morning deposit enough money to satisfy all required payments, including the first payment (to be made later today).
What amount must be invested? (Hint: It will be the sum of three amounts which must be individually calculated.)