Final answer:
The present value of renovations is $42281285.
Step-by-step explanation:
The present value of renovations is $42281285, which means that you need to invest $42281285 in order to have $600,000 in five years. To calculate the present value, we can use the formula:
Present value = Future value / (1 + Interest rate)Number of years
Given that the interest rate is 7% and the number of years is 5, we can substitute these values into the formula to find the present value:
Present value = $600,000 / (1 + 0.07)5 = $42281285