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.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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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