Question

# 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.

(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

Since you have not given table , I am calculating factor value using calculator.

Future value of payment = \$720000

Life = 4 year

Required return = 9%

Future value of \$1 @9% for 4 years is 1.41158

So investment required today = \$720000/1.41158

= \$510066.73

Feel free to ask any queries..

Also plz upvote it means a lot thank you

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