About financial obligation

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Your firm is concerned about a financial obligation of $17 million coming due in 5 years. If your firm could earn 6.5% APR on an investment, how much would your firm have to invest today to fund (finance) the future $17 million obligation? (In other words, what is the PV of $17 M due 5 years from now if the interest rate is 6.5%?) Assume annual compounding.

Reference no: EM133228774

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