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 |

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