Question
Largo Freightlines plans to build a new garage in three years to have more space for repairing its trucks. The garage will cost $400,000. (refer
Largo Freightlines plans to build a new garage in three years to have more space for repairing its trucks. The garage will cost $400,000. (refer to Attached Table) Required: 1a. What lump-sum amount should the company invest now to have the $400,000 available at the end of the three-year period? Assume that the company can invest money at eight percent. (Round discount factor to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Amount to be invested $ 1b. What lump-sum amount should the company invest now to have the $400,000 available at the end of the three-year period? Assume that the company can invest money at twelve percent. (Round discount factor to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Amount to be invested $
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