Question

# Sunland Company is considering an investment that will return a lump sum of \$863,000, 8 years...

Sunland Company is considering an investment that will return a lump sum of \$863,000, 8 years from now.

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

What amount should Sunland Company pay for this investment to earn an 9% return? (Round answer to 2 decimal places, e.g. 25.25.)

 Lincoln Company should pay \$enter the amount that should be invested rounded to 2 decimal places

Present value=863,000*Present value of discounting factor(rate%,time period)

=863,000/1.09^8

=863,000*0.50187

=\$433113.81

#### Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
• ### Sunland Company is considering an investment that will return a lump sum of \$580,000 5 years...

Sunland Company is considering an investment that will return a lump sum of \$580,000 5 years from now. What amount should Sunland Company pay for this investment in order to earn a 6% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 2 decimal places, e.g. 5,275.25.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY...

• ### Brief Exercise G-9 Lincoln Company is considering an investment that will return a lump sum of...

Brief Exercise G-9 Lincoln Company is considering an investment that will return a lump sum of \$713,100,5 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Lincoln Company pay for this investment to earn an 10% return? (Round answer to 2 decimal places, e.g. 25.25.) Lincoln Company should pay \$

• ### Brief Exercise G-10 Crane Company is considering an investment that will return a lump sum of...

Brief Exercise G-10 Crane Company is considering an investment that will return a lump sum of \$864,800, 7 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Crane Company pay for this investment to earn an 6% return? (Round answer to 2 decimal places, e.g. 25.25.) Lincoln Company should pay Click if you would like to Show Work for this question: Open...

• ### Messi Company is considering an investment that will return a lump sum of \$720,000 4 years...

Messi Company is considering an investment that will return a lump sum of \$720,000 4 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Messi Company pay for this investment to earn an 9% return? (Round answer to 2 decimal places, e.g. 25.25.) Messi Company should pay \$ Click if you would like to Show Work for this question: Open Show Work

• ### Brief Exercise A-9 Messi Company is considering an investment that will return a lump sum of...

Brief Exercise A-9 Messi Company is considering an investment that will return a lump sum of \$940,000 6 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Messi Company pay for this investment to earn an 6% return? (Round answer to 2 decimal places, e.g. 25.25.) Messi Company should pay \$

• ### Messi Company is considering an investment that will return a lump sum of \$880,000 7 years from now. Click here to view...

Messi Company is considering an investment that will return a lump sum of \$880,000 7 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Messi Company pay for this investment to earn an 12% return? (Round answer to 2 decimal places, e.g. 25.25.) Messi Company should pay \$ ??

• ### Brief Exercise G-10 Sandhill Co. is considering an investment that will return a lump sum of...

Brief Exercise G-10 Sandhill Co. is considering an investment that will return a lump sum of \$921,200, 4 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Sandhill Co. pay for this investment to earn an 8% return? (Round answer to 2 decimal places, e.g. 25.25.) Lincoln Company should pay Click if you would like to Show Work for this question: Open...

• ### Brief Exercise A-9 x Your answer is incorrect. Try again. Messi Company is considering an investment...

Brief Exercise A-9 x Your answer is incorrect. Try again. Messi Company is considering an investment that will return a lump sum of \$820,000 7 years from now. Click here to view the factor table, (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Messi Company pay for this investment to earn an 7% return? (Round answer to 2 decimal places, e.g. 25.25.) Messi Company should pay Click If you would like...

• ### Brief Exercise G-10 Blossom Company earns 8% on an investment that will return \$430,000 7 years...

Brief Exercise G-10 Blossom Company earns 8% on an investment that will return \$430,000 7 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the amount Blossom should invest now to earn this rate of return? (Round answer to 2 decimal places, e.g. 25.25.) Blossom Company should invest \$enter an amount to be invested in dollars rounded to 2 decimal places

• ### Brief Exercise G-9 X] your answer is incorrect. Try again. Mess Company is considering an investment that will retu...

Brief Exercise G-9 X] your answer is incorrect. Try again. Mess Company is considering an investment that will return a lump sum of \$850,000 3 years from now. Click here to view the factor table (For calculation purposes, se decimal places as displayed in the factor table provided.) What amount should Messi Company pay for this investment to earn an 8% return? (Round answer to 2 decimal places, 6.9. 25.25.) Messi Company should pay, 1070755.20