Havana, Inc., has identified an investment project with the following cash flows

Question

Havana, Inc., has identified an investment project with the following cash flows. If the discount rate is 9 percent, what is the future value of these cash flows in Year 4? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) What is the future value at an interest rate of 12 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) What is the future value at an interest rate of 23 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Future value

Explanation / Answer

1.

Future Value in 4th year = $5468.55

2.

Future Value in 4th year = $5313.24

3.

Future Value in 4th year = $4839.32

Year Cash Flows Discounting Rate Amount 1 1040 0.772 802.88 2 1270 0.842 1069.34 3 1490 0.917 1366.33 4 2230 1 2230 5468.55

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