1. A cash flow of $747.25 is available now (in Period 0). For this cash flow, the appropriate discount rate/period is 6.0%. What is the period 5 future value? Use worksheet "Single-FV". **Single Cash Flow Analysis****Inputs:**- **Single Cash Flow:** 747.25- **Discount Rate/Period:** 6.00%- **Number of Periods:** 5**Future Value Calculation using a Time Line:**| Period | 0 | 1 | 2 | 3 | 4 | 5 ||--------|---|---|---|---|---|---|| Cash Flows | | | | | | || Future Value of Each Cash Flow | | | | | | [Highlighted] || **Future Value** | |**Future Value Calculation using the Formula:**- **Future Value:** [Highlighted]**Future Value Calculation using the FV Function:**- **Future Value:** [Highlighted]**Explanation:**The table illustrates the process of calculating the future value of a single cash flow using three methods. The highlighted areas show where the future value of the cash flow at the end of period 5 is calculated or displayed. This involves applying the given discount rate over the specified number of periods.

Single Cash Flow Future Value Inputs Single Cash Flow Discount Rate/Period 747.25 6.00% Number of Periods Future Value using a Time Line Period 1 2 3 4 Cash Flows Future Value of Each Cash Flow Future Value Future Value using the Formula Future Value Future Value using the FV Function Future Value

Single Cash Flow Future Value Inputs Single Cash Flow Discount Rate/Period 747.25 6.00% Number of Periods Future Value using a Time Line Period 1 2 3 4 Cash Flows Future Value of Each Cash Flow Future Value Future Value using the Formula Future Value Future Value using the FV Function Future Value

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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