Cannonier, Inc., has identified on investment project with the following cash fl

Question

Cannonier, Inc., has identified on investment project with the following cash flows. 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.) What is the future value at a discount rate of 13 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 22 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e g., 32.16.)

Explanation / Answer

Assuming cash flows all at end of year

FV(@7%)=930*(1+7%)^3+1160*(1+7%)^2+1380*(1+7%)^1+2120*(1+7%)^0=6063.97

FV(@13%)=930*(1+13%)^3+1160*(1+13%)^2+1380*(1+13%)^1+2120*(1+13%)^0=6502.50

FV(@22%)=930*(1+22%)^3+1160*(1+22%)^2+1380*(1+22%)^1+2120*(1+22%)^0=7218.88

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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