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Brief Exercise G-10 Sandhill Co. is considering an investment that will return a lump sum of $921,200, 4 years from now. Clic

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Answer #1

Future value = Present value * (1 + R)n

Present value = $921,200 / [(1 + 0.08)4]

Present value = $921,200 / (1.36048896)

Present value = $677,109.50

Sandhill co. should pay $677,109.50

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