How much would your firm have to invest today to fund

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Question: Your firm is concerned about a financial obligation of $10 million coming due in 8 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 $10 million obligation? (In other words, what is the PV of $10 M due 8 years from now if the interest rate is 6.5%?) Assume annual compounding. Answer in units of millions of dollars and to 2 decimal points.

Reference no: EM133443788

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