EXERCISE $14$A$-4$ Basic Present Value Concepts LO$14-7$

Fraser Company will need a new warehouse in five years. The warehouse will cost $$500,000$ to build.

Required:

What lump$-$sum amount should the company invest now to have the $$500,000$ available at the end of the five$-$year period? Assume that the company can invest money at:

Ten percent.

Fourteen percent.