Question

# given the following cash inflow at the end of each year, what is the future value...

given the following cash inflow at the end of each year, what is the future value of this cash flow at 6%,8% and 15% interest rates at the end of year 7.                 year 1 \$12,000.      year 2.   \$21,000.   year 3. \$30,000.    years 4 through 6: \$0.     year 7.     \$150,000

Cash Flow at Year 1 = \$12,000
Cash Flow at Year 2 = \$21,000
Cash Flow at Year 3 = \$30,000
Cash Flow at Year 4 = \$0
Cash Flow at Year 5 = \$0
Cash Flow at Year 6 = \$0
Cash Flow at Year 7 = \$150,000

Interest Rate = 6%

Present Value = \$12,000 / 1.06 + \$21,000 / 1.06^2 + \$30,000 / 1.06^3 + \$150,000 / 1.06^7
Present Value = \$154,957.83

Interest Rate = 8%

Present Value = \$12,000 / 1.08 + \$21,000 / 1.08^2 + \$30,000 / 1.08^3 + \$150,000 / 1.08^7
Present Value = \$140,453.75

Interest Rate = 15%

Present Value = \$12,000 / 1.15 + \$21,000 / 1.15^2 + \$30,000 / 1.15^3 + \$150,000 / 1.15^7
Present Value = \$102,429.84

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