Mike Derr Company expects to earn 8 per year on an investmen

Mike Derr Company expects to earn 8% per year on an investment that will pay $616,000 ten years from now. P of SI EVof $1 of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round \"Table Factor\" to 4 decimal places.) Table Factor \" to 4 decimal places) Compute the present value of this investment. Future Value Table Factor Present Value

Solution

Future Value / Table Factor = Present Value 616000 / 2.1589 =             2,85,330 FV (8%, 10 years) = (1+0.08)^10 FV (8%, 10 years) = 2.1589