If the discount rate is 9 percent, what is the future value of these cash flows

Question

If the discount rate is 9 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 12 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 23 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

Compounding factor = ( 1 + discount rate) ^ ( Last year period - corresponding year period)

Componded value = cash flow * compounding factor

Discount rate= 9% Year Cashflow Compounding factor Compounded cash flow 1 960 1.295029 1243.22784 2 1190 1.1881 1413.839 3 1410 1.09 1536.9 4 2150 1 2150 Future value = Sum of compounded cash flows= 6343.96684

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