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Delta Co. has a $10 million principal payment due at the end of 5 years. Assuming a discount rate of 7%, how much should Delta

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Delta Co. has a $10 million principal payment due at the end of 5 years. Assuming a discount rate of 7%, how much should Delta invest on January, Year 1, to produce an amount of $10 million in 5 years? Periods 1 2 3 4 5 PV of $1 at 7% .935 .873 .816 .763 .713 PV of an Ordinary Annuity of $1 at 7% .935 1.808 2.624 3.387 4.100 O A. $7,130,000 B. $8,730,000 C. $8,160,000 O D. $7,630,000

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