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If the discount rate is 6 percent, what is the future value of these cash flows

ID: 2769074 • 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

year cash flow FV @ 6% FV @ 14% FV @ 21% 1 1100 $1,388.72 $1,857.86 $2,357.95 2 1330 $1,584.05 $1,970.45 $2,356.18 3 1550 $1,741.58 $2,014.38 $2,269.36 4 2290 $2,427.40 $2,610.60 $2,770.90 Total $7,141.76 $8,453.29 $9,754.38

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