Blossom, Inc., management expects the company to earn cash flowsof $12,800, $15,600, $18,600, and $19,400...

Blossom, Inc., management expects the company to earn cash flows of $12,800, $15,600, $18,600, and $19,400 over the next four years. If the company uses an 6 percent discount rate, what is the future value of these cash flows at the end of year 4? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)

Future value

Expert Solution

FV = 12,800/(1 + 0.06)^3 + 15,600/(1 + 0.06)^2 + 18,600/(1 + 0.06)^1 + 19,400/(1 + 0.06)^0

FV = 10,747.1268228135 + 13,883.9444642221 + 17,547.1698113208 + 19,400

FV = $61,578.2410984

The future value at the end of year 4 = $61,578.24

jeff jeffy answered 2 years ago

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