Cullumber Company is considering an investment that will return a lump sum of $942,800, 3 years from now. What amount should Cullumber Company pay for this investment to earn a 12% return?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...
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Cullumber
Company
is
considering an investment that will
return a lump sum of $942,800, 3
years from now. What amount
should Cullumber Company pay
for this investment to earn a 12%
return?
Transcribed Image Text:Cullumber Company is considering an investment that will return a lump sum of $942,800, 3 years from now. What amount should Cullumber Company pay for this investment to earn a 12% return?
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