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Fraser Company will need a new warehouse in eight years. The warehouse will cost $490,000 to build. Click here to view Exhibit 13B-1 and Exhibit
Fraser Company will need a new warehouse in eight years. The warehouse will cost $490,000 to build. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.
Required: 1. What lump-sum amount should the company invest now to have the $490,000 available at the end of the eight-year period? Assume that the company can invest money at four percent. (Round discount factor to 3 decimal places.)
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