Fraser Company will need a new warehouse in five years. The warehouse will cost $500,000...
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Fraser Company will need a new warehouse in five years. The warehouse will cost $500,000 to build. Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $500,000 available at the end of the five-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.) Present Value 1. Ten percent 2. Fourteen percent
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