Question
Fraser Company will need a new warehouse in three years. The warehouse will cost $350,000 to build. Use Excel or a financial calculator to solve.
Fraser Company will need a new warehouse in three years. The warehouse will cost $350,000 to build.
Use Excel or a financial calculator to solve. Round answers to the nearest dollar.
Required:
1. What lump-sum amount should the company invest now to have the $350,000 available at the end of the three-year period? Assume that the company can invest money at ten percent.
Amount to be invested?-
2. What lump-sum amount should the company invest now to have the $350,000 available at the end of the three-year period? Assume that the company can invest money at six percent.
Amount to be invested?-
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