Question

Lump sum received 3 years from now = \$850,000

Interest rate = 8%

Amount to be invested = [\$850,000 / (1 + 0.08)3]

Amount to be invested = \$850,000 * 0.793832241

Amount to be invested = \$674,757.40

Messi company should pay \$674,757.40

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