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9. You are the CFO of a company that is growing rapidly. To meet sales forecasts, you
anticipate that you will need to buy a new piece of machinery in two years that costs
$1,000,000. Your bank has agreed to finance 80% of the cost and will charge a 3% fee on
the loan balance at initiation. You have some cash on hand right now that you can invest at
5.5% until you need it for this purchase. How much do you have to invest right now to
cover you cash needs two years from now?

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