Consider the following cash flow: Year Cash Flow 2 $ 21,600 3 39,600 5 57,600 As

Question

Consider the following cash flow: Year Cash Flow 2 $ 21,600 3 39,600 5 57,600 Assume an interest rate of 8.4 percent per year. Requirement 1: If today is Year 0, what is the future value of the cash flows five years from now? (Do not include the dollar signs ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Future value $ Requirement 2: If today is Year 0, what is the future value of the cash flows ten years from now? (Do not include the dollar signs ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Future value $

Explanation / Answer

1. future value of the cash flows five years from now = 21,600*1.084^3 + 39,600*1.084^2 + 57,600*1.084^0 =131645.45 2. future value of the cash flows ten years from now = 21,600*1.084^8 + 39,600*1.084^7 + 57,600*1.084^5 =197039.03

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.