If the discount rate is 6 percent, what is the future value of these cash flows
ID: 2384238 • Letter: I
Question
If the discount rate is 6 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.)
What is the future value at a discount rate of 14 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
What is the future value at a discount rate of 21 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Cannonier, Inc., has identified an investment project with the following cash flows.Explanation / Answer
If the discount rate is 6 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.)
Future value = 1060*1.06^3 + 1290*1.06^2 + 1510*1.06 + 2250
Future value = $ 6562.52
What is the future value at a discount rate of 14 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Future value = 1060*1.14^3 + 1290*1.14^2 + 1510*1.14 + 2250
Future value = $ 7218.32
What is the future value at a discount rate of 21 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Future value = 1060*1.21^3 + 1290*1.21^2 + 1510*1.21 + 2250
Future value = $ 7843.64
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