Question

Fuente, Inc., has identified an investment project with the following cash flows.

Year	Cash Flow
1		$	1,090
2			1,320
3			1,540
4			2,280

a.	If the discount rate is 7 percent, what is the future value of these cash flows in Year 4?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.	If the discount rate is 13 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c.	If the discount rate is 22 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

a.	Future value at 7%
b.	Future value at 13%
c.	Future value at 22%

Answer 1

Req a:
Year	Ccashflows	FVf at 7%	Future values
1	1090	1.225043	1335.297
2	1320	1.1449	1511.268
3	1540	1.07	1647.8
4	2280	1	2280
Future values of cashflows			6774.36
Req b:
Year	Ccashflows	FVf at 13%	Future values
1	1090	1.442897	1572.758
2	1320	1.2769	1685.508
3	1540	1.13	1740.2
4	2280	1	2280
Future values of cashflows			7278.46
Req c:
Year	Ccashflows	FVf at 22%	Future values
1	1090	1.815848	1979.274
2	1320	1.4884	1964.688
3	1540	1.22	1878.8
4	2280	1	2280
Future values of cashflows			8102.76