Kraft Foods is a US-based FMCG firm. The company has earned huge profits in the current year and wants to invest some money today with the objective of buying a new plant worth $500,000 for its snack food division after 5 years. You are the manager of the company. How much money should you invest in a fixed deposit today to have a corpus amount of $500,000 at the end of the fifth year? The interest rate of the fixed deposit is 7.5% compounded annually. (You can give approximate numbers as well) 

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Ive been thinking about this problem and I can tell you that to reach your goal of 500000 in five ye... View the full answer