HomeworkLib
Question

Cullumber, Inc., management expects the company to earn cash flows of $12,900, $16,300, $18,600, and $19,800...

Cullumber, Inc., management expects the company to earn cash flows of $12,900, $16,300, $18,600, and $19,800 over the next four years. If the company uses an 10percent discount rate, what is the future value of these cash flows at the end of year 4? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=$12900*(1.1)^3+16300*(1.1)^2+18600*(1.1)^1+19800

which is equal to

=$77152.90

0 0
Add a comment
Know the answer?
Add Answer to:
Cullumber, Inc., management expects the company to earn cash flows of $12,900, $16,300, $18,600, and $19,800...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Problem 6.01 Crane, Inc., management expects the company to earn cash flows of $12,500, $13,600, $18,600,...

    Problem 6.01 Crane, Inc., management expects the company to earn cash flows of $12,500, $13,600, $18,600, and $19,300 over the next four years. If the company uses an 7 percent discount rate, what is the future value of these cash flows at the end of year 4? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) Future value

  • Sunland, Inc., management expects the company to earn cash flows of $11,800, $16,400, $18,900, and $19,100...

    Sunland, Inc., management expects the company to earn cash flows of $11,800, $16,400, $18,900, and $19,100 over the next four years. If the company uses an 10 percent discount rate, what is the future value of these cash flows at the end of year 4? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.) Future value $

  • BACK LET PRENTER VERSION NEXT Problem 6.01 Your answer is incorrect. Try again. Wildhorse, Inc., management...

    BACK LET PRENTER VERSION NEXT Problem 6.01 Your answer is incorrect. Try again. Wildhorse, Inc., management expects the company to earn cash flows of $12,500, $15,700, $18,000, and $19,400 over the next four years. If the company uses an 9 percent discount rate, what is the future value of these cash flows at the end of year 4? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values) Future value 56,203.03 Question Attempts: 1 of 2 used...

  • D G H L 6.1. Future value with multiple cash flows: Konerko, Inc., expects to earn...

    D G H L 6.1. Future value with multiple cash flows: Konerko, Inc., expects to earn cash flows of $13,227, $15,611, 518,970, and $19,114 over the next four years. If the company uses an 8 percent discount rate, what is the future value of these cash flows at the end of year 4? 6.4. Present value with multiple cash flows: Saul Cervantes has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts...

  • Problem 10.32 a-b Management of Cullumber Measures, Inc., is evaluating two independent projects. The company uses...

    Problem 10.32 a-b Management of Cullumber Measures, Inc., is evaluating two independent projects. The company uses a 11.30 percent discount rate for such projects. The costs and cash flows for the projects are shown in the following table. Project 1 Year Project 2 $8,285,775 $12,661,917 3,203,590 2,181,330 1 3,904,490 2 1,935,890 3 1,400,100 3,142,780 1,182,200 4,408,600 1,142,280 4,340,480 5 1,533,040 6 1,495,290 7 a. What are the IRRS for the projects? (Round final answer to 2 decimal places, e.g. 15.25%.)...

  • Please label and bold the answers. Thanks so much I will make sure to leave you...

    Please label and bold the answers. Thanks so much I will make sure to leave you a thumbs up and this is my last question I can post this month. This is due at 3 so please help me. I would really appreciate it thanks so much!!!!!!!! Problem 6.01 Sheridan, Inc., management expects the company to earn cash flows of $12,300, $16,400, $17,900, and $19,200 over the next four years. If the company uses an 7 percent discount rate, what...

  • Problem 6.23 (Solution Video) Cullumber Energy Company owns several gas stations. Management is looking to open...

    Problem 6.23 (Solution Video) Cullumber Energy Company owns several gas stations. Management is looking to open a new station in the western suburbs of Baltimore. One possibility that managers at the company are evaluating is to take over a station located at a site that has been leased from the county. The lease, originally for 99 years, currently has 73 years before expiration. The gas station generated a net cash flow of $87,970 last year, and the current owners expect...

  • Problem 10.21 (Excel Video) Cullumber Communication Corp. is investing $8,975,700 in new technologies. The company's management...

    Problem 10.21 (Excel Video) Cullumber Communication Corp. is investing $8,975,700 in new technologies. The company's management expects significant benefits in the first three years after installation (as can be seen by the following cash flows), and smaller constant benefits in each of the next four years. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from...

  • Oriole Bakeries recently purchased equipment at a cost of $537,500. Management expects the equipment to generate...

    Oriole Bakeries recently purchased equipment at a cost of $537,500. Management expects the equipment to generate cash flows of $284,250 in each of the next four years. The cost of capital is 16 percent. What is the MIRR for this project? (Round intermediate calculations to 3 decimals e.g. 15.123 and final answer to 1 decimal e.g. 15.2%. Do not round factor values.) MIRR = %

  • Carla Vista Bakeries recently purchased equipment at a cost of $780,500. Management expects the equipment to...

    Carla Vista Bakeries recently purchased equipment at a cost of $780,500. Management expects the equipment to generate cash flows of $233,250 in each of the next four years. The cost of capital is 13 percent. What is the MIRR for this project? (Round intermediate calculations to 3 decimals e.g. 15.123 and final answer to 1 decimal e.g. 15.2%. Do not round factor values.)

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT