Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 2 3 4 a. If the discount rate is 8 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the discount rate is 11 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If the discount rate is 24 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. b. $1,075 1,210 1,340 1,420 C. Future value Future value Future value

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

Fuente, Inc., has identified an investment project with the following cash flows.
Year
1
2
3
4
a. If the discount rate is 8 percent, what is the future value of the cash flows in Year 4?
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
b. If the discount rate is 11 percent, what is the future value of the cash flows in Year 4?
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
Cash Flow
$1,075
1,210
1,340
1,420
c. If the discount rate is 24 percent, what is the future value of the cash flows in Year 4?
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
a.
b.
C.
Future value
Future value
Future value
Transcribed Image Text:Fuente, Inc., has identified an investment project with the following cash flows. Year 1 2 3 4 a. If the discount rate is 8 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If the discount rate is 11 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Cash Flow $1,075 1,210 1,340 1,420 c. If the discount rate is 24 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. b. C. Future value Future value Future value
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