Question

you are given an investment to analyze. the cash flows from this investment are:

end of year

1. $2,777

2. $3,130

3 $.697

4.$2,091

5. $966

what is the future value of this investment at the end of year five if 19.57 percent of the year is the appropriat interest(discount) rate?

Answer 1

End of year	Cash flows	FV Factor at 19.57%	Future vlue
1	2,777	x 1.1957^4	$    5,676.29
2	3,130	x 1.1957^3	$    5,350.71
3	697	x 1.1957^2	$        996.50
4	2,091	x 1.1957^1	$    2,500.21
5	966	x 1.1957^0	$        966.00
Future Value			$ 15,489.71