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

Question

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

Explanation / Answer

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Future Value discount rate@6% at end of 4th year Year Cash flow Future Value factor=(1+r)^n) Future Value end of 4th year 1                    940                    1.2625 1,186.73 2                1,170                    1.1910 1,393.49 3                1,390                    1.1236 1,561.80 4                2,130                    1.0600 2,257.80 6,399.82

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