Exercise 12A-4 (Algo) Basic Present Value Concepts [LO12-7] Fraser Company will need a new warehouse in...
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Exercise 12A-4 (Algo) Basic Present Value Concepts [LO12-7] Fraser Company will need a new warehouse in nine years. The warehouse will cost $400,000 to build. Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $400,000 available at the end of the nine-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.) 1. Thirteen percent 2. Eight percent Present Value Exercise 12A-4 (Algo) Basic Present Value Concepts [LO12-7] Fraser Company will need a new warehouse in nine years. The warehouse will cost $400,000 to build. Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $400,000 available at the end of the nine-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.) 1. Thirteen percent 2. Eight percent Present Value
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