In Three Years Time, the Company Estimates That They Will

Multiple Choice

In three years time, the Company estimates that they will need $10 million to build and equip a new plant. To achieve this target amount with a one-time investment today, how much cash would the company have to invest if the return is 12% compounded annually?

A) $6,788,000
B) $7,118,000
C) $7,513,100
D) $8,242,000
E) $14,049,000