Solve the following two cases (the cases are independent).
1. If you invest $4,000 today at 10% interest, what is the value of the investment at the end of 5 years?
2. If you invest $1,000 at the end of each of the next 5 years and the investment earns 10% interest, what is the value of the investment at the end of 5 years?
FV factor at 10% at year 5 is 1.6105
(Table A-1
FV
(Table A-2 Future Value Interest Factors for a One-Dollar Annuity)
Requirement:
Solve the above two cases (the cases are independent).
What is the accounting
Hints and Reference:
Lecture and reading material of Capital Budgeting Part-2 and related MS excel file.
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