Wells, Inc., has identified an investment project with the following cash flows. Cash Flow $950 1,180 1,400 2,140 Year 1 2 234 a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Future value at 8 percent b. Future value at 11 percent c. Future value at 24 percent
Wells, Inc., has identified an investment project with the following cash flows. Cash Flow $950 1,180 1,400 2,140 Year 1 2 234 a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Future value at 8 percent b. Future value at 11 percent c. Future value at 24 percent
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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![Wells, Inc., has identified an investment project with the following cash flows.
Cash Flow
$ 950
1,180
1,400
2,140
Year
1
~34
2
a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4?
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
b. What is the future value at an interest rate of 11 percent? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. What is the future value at an interest rate of 24 percent? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
a.
Future value at 8 percent
b. Future value at 11 percent
Future value at 24 percent
c.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F18d7602f-9f25-445c-bda8-4d38e99e2d82%2F8185deee-6ed2-4aad-b90f-0f15edbe70c7%2F3ruhg4_processed.png&w=3840&q=75)
Transcribed Image Text:Wells, Inc., has identified an investment project with the following cash flows.
Cash Flow
$ 950
1,180
1,400
2,140
Year
1
~34
2
a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4?
(Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
b. What is the future value at an interest rate of 11 percent? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. What is the future value at an interest rate of 24 percent? (Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
a.
Future value at 8 percent
b. Future value at 11 percent
Future value at 24 percent
c.
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