Largo Freight Lines plans to build a new garage in three years to have more space for repairing its trucks. The garage will cost $400,000. What amount should the company invest now in order to have the $400,000 available at the end of three years if the company can earn 8% on its money? If the company can earn 12% on its money? Show your work.

TEMPLATE FOR ANSWER:

1 COST 400000 NUMBER OF PERIODS AT 8% AT 12%