Calculate the future worth of the purchase shown below using an interest rate of 9% per year.
First Cost: -$20,000
Operating Cost: -$3,000/YR
Salvage Value: $4,000
Useful Life: 6 Years
We can convert given cash flow into future value using two formula
Method 1. Convert the cash flow into present value then convert it to future value.
Now convert it to future value
FW = - 31,072.69 × 1.096 = - $ 52,112.01
Method 2. Calculating the future value
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