Table 2 shows cash flow information of business account with rate of return 8% per year.Determine the future value at year 11. Table 2: Cash Flow Information of Business AccountYear1413,000 13,000Cash Inflow, RM per yearCash Outflow, RM per year12,000 12,0004,0004,00012,0004,0005,0005,000Year6.8101116,00018,500| 13,2003,0006,000Cash Inflow, RMper yearCash Outflow, RM per year6,0008,5003,200

Rate = 8℅ Year Cash Inflow Cash Outflow Time to Year 11 Cash Flow = Inflow - Outflow 1 13000…

Answered: Table 2 shows cash flow information of…

Table 2 shows cash flow information of business account with rate of return 8% per year. Determine the future value at year 11.

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

Table 2 shows cash flow information of business account with rate of return 8% per year.

Determine the future value at year 11.

Table 2: Cash Flow Information of Business Account
Year
1
4
13,000 13,000
Cash Inflow, RM per year
Cash Outflow, RM per year
12,000 12,000
4,000
4,000
12,000
4,000
5,000
5,000
Year
6.
8
10
11
16,000
18,500| 13,200
3,000
6,000
Cash Inflow, RM
per year
Cash Outflow, RM per year
6,000
8,500
3,200

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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