Question

blossom company is considering an investment that will return lum sum of 450000 5 years from...

blossom company is considering an investment that will return lum sum of 450000 5 years from now. what amount should blossom company pay for this investmentbin order to earn 3 % return

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Answer #1
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Blossom company Amount $
Future value       450,000.00
n=                   5.00
i= 3%
Present value Factor          0.862609
Present value       388,173.95
So blossom company should pay $ 388,173.95 for this investment.
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