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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
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.) Present Value 1. Four percent 2. Eight percent
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