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Your firm is concerned about a financial obligation of $10 million coming due in 7 years. If your firm could earn 6.5% APR on an
Your firm is concerned about a financial obligation of $10 million coming due in 7 years. If your firm could earn 6.5% APR on an investment, how much would your firm have to invest today to fund (finance) the future $10 million obligation?(In other words, what is the PV of $10 M due 7 years from now if the interest rate is 6.5%?)Assume annual compounding.Answer in units of millions of dollars and to 2decimal points.(eg. $10.12 )
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