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What lump-sum amount should the company invest now to have

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.

Required:

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:

a. Eight percent.
b. Twelve percent.

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Managerial Accounting: What lump-sum amount should the company invest now to have

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Managerial Accounting: What lump-sum amount should the company invest now to have

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