Answer:
Instructions are below.
Explanation:
Giving the following information:
Future value= $11,000,000
Number of years= 2
To calculate the initial investment required, we need an interest rate. We weren't provided with this information, however, I will provide the formula and an interest rate.
i= 8% compounded annually.
To calculate the lump-sum, we need to use the following formula.
PV= FV/(1+i)^n
PV= 11,000,000/(1.08^2)
PV= $9,430,727.02
