Consider the following cash flows: Year Cash Flow 2 $ 22,800 3 40,800 5 58,800 Assume an interest rate of 9.6 percent per year. a. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Consider the following cash flows: Year Cash Flow 2 $ 22,800 3 40,800 5 58,800 Assume an interest rate of 9.6 percent per year. a. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...
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Question
Consider the following cash flows: |
Year | Cash Flow | |||
2 | $ | 22,800 | ||
3 | 40,800 | |||
5 | 58,800 | |||
Assume an interest rate of 9.6 percent per year. |
a. |
If today is Year 0, what is the |
b. | If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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