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.

Year Cash Flow

1- $1,060

2- $1,290

3-$1,510

4-$2,250

Requirement 1: If the discount rate is 6 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).) Future value $

Requirement 2: What is the future value at an interest rate of 14 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 $

Requirement 3: What is the future value at an interest rate of 21 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

Year Cashflow Interest Future value Year Cashflow Interest Future value Year Cashflow Interest Future value 1 -1060 6% -1262.48 1 -1060 14% -1570.44 1 -1060 21% -1877.85 2 -1290 6% -1449.44 2 -1290 14% -1676.48 2 -1290 21% -1888.69 3 -1510 6% -1600.6 3 -1510 14% -1721.4 3 -1510 21% -1827.1 4 -2250 6% -2250 4 -2250 14% -2250 4 -2250 21% -2250 FV -6562.52 FV -7218.32 FV -7843.64

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