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2. PV and FVs of a cash flow stream (Draw the time line in Excel. Use...

2. PV and FVs of a cash flow stream (Draw the time line in Excel. Use Excel financial functions only.) PLEASE SHOW WORK WTH EXCEL

An investment will pay $100 at the end of each of the next 3 years, $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If other investments of equal risk earn 5% annually, what is its present value? Its future value?

PLEASE SHOW WORK WTH EXCEL

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Answer #1

I have used NPV() formula to calculate the present value of all future cash flows, and FV() to calculate the future value of the present value obtained by NPV().

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