Year Nm Cash Flow $525 800 1.100 1,325 nts a.If the discount rate is 10 percent,...

Question

Question

Year Nm Cash Flow $525 800 1.100 1,325 nts a.If the discount rate is 10 percent, what is the future value of these cash flows

business finance

Answer 1

Answer #1

The future value is computed by using the below mentioned formula:

Future value = Present value (1 + r)ⁿ

a. The future value is computed as follows:

= $ 525 x 1.10³ + $ 800 x 1.10² + $ 1,100 x 1.10 + $ 1,325

= $ 4,201.78 Approximately

b. The future value is computed as follows:

= $ 525 x 1.17³ + $ 800 x 1.17² + $ 1,100 x 1.17 + $ 1,325

= $ 4,547.97 Approximately

c. The future value is computed as follows:

= $ 525 x 1.26³ + $ 800 x 1.26² + $ 1,100 x 1.26 + $ 1,325

= $ 5,031.28 Approximately

Feel free to ask in case of any query relating to this question

Answer 2

Similar Homework Help Questions

Assume the appropriate discount rate for the following cash flows is 8.8 percent. Year Cash Flow...

Assume the appropriate discount rate for the following cash flows is 8.8 percent. Year Cash Flow $1,400 1.300 1,000 800 What is the present value of the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
QUESTION : The appropriate discount rate for the following cash flows is 10 percent compounded quarterly....

QUESTION : The appropriate discount rate for the following cash flows is 10 percent compounded quarterly. Year Cash Flow 1 $700 2 800 3 0 4 1,200 What is the present value of the cash flows?
The appropriate discount rate for the following cash flows is 14 percent compounded quarterly Year Cash...

The appropriate discount rate for the following cash flows is 14 percent compounded quarterly Year Cash Flow 2 3 4 $800 500 0 1,100 Required: What is the present value of the cash flows?

Wells, Inc., has identified an investment project with the following cash flows. Year NM Cash Flow...

Wells, Inc., has identified an investment project with the following cash flows. Year NM Cash Flow $ 1,050 1,280 1,500 2,240 a. If the discount rate is 7 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 13 percent? (Do not round intermediate calculations and round your answer to 2...
Year 1 2. 3 4 Cash Flow $ 960 1,190 1,410 2,150 a. If the discount...

Year 1 2. 3 4 Cash Flow $ 960 1,190 1,410 2,150 a. If the discount rate is 9 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the discount rate is 12 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places,...
The appropriate discount rate for the following cash flows is 9 percent compounded quarterly. Year Cash...

The appropriate discount rate for the following cash flows is 9 percent compounded quarterly. Year Cash Flow $ 860 940 10 points 1,530 eBook Print What is the present value of the cash flows? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) References Present value

The appropriate discount rate for the following cash flows is 6 percent compounded quarterly. Year Cash...

The appropriate discount rate for the following cash flows is 6 percent compounded quarterly. Year Cash Flow 1 $800 2 500 3 0 4 1,400 What is the present value of the cash flows? Multiple Choice $2,254.63 $2,308.65 $2,346.65 $1,079.36 $2,300.64
Fuente, Inc., has identified an investment project with the following cash flows. Year. Cash Flow 1...

Fuente, Inc., has identified an investment project with the following cash flows. Year. Cash Flow 1 $675 2 925 3 1,075 4 1,475 a. If the discount rate is 9 percent, what is the future value of these cash flows in year 4? b. What is the future value at a discount rate of 17 percent?
35 Problem 6-27 Discounted Cash Flow Analysis [LO1] 10 polnts The appropriate discount rate for the...

35 Problem 6-27 Discounted Cash Flow Analysis [LO1] 10 polnts The appropriate discount rate for the following cash flows is 8 percent compounded quarterly. Year Cash Flow 1 930 2 3 eBook 1,010) 0 4 1,600 rirn What is the present value of the cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

The appropriate discount rate for the following cash flows is 8 percent compounded quarterly. Year Cash...

The appropriate discount rate for the following cash flows is 8 percent compounded quarterly. Year Cash Flow $ 800 2 880 0 1,470 What is the present value of the cash flows? (Do not round intermediate calculatic and round your answer to 2 decimal places, e.g., 32.16.) Present value