consider the following cash flows. year 2 22600$ year 3 40600$ year 5 58600$ assume an...

consider the following cash flows.
year 2 22600$
year 3 40600$
year 5 58600$
assume an interest rate of 9.4% per year.
if today is year 0 what is the future value of cash flows 5 years from now?

Expert Solution

assuming cashflows recieved in year beinging

future value= present vlaue * (1+r)ⁿ

r=rate of interest

n= no of year

year	A.CASH FLOWS	year to maturity (n)	B.〖(1+?)〗^?	*C.future value (AB)**
2	22600	3	1.309	29591.05
3	40600	2	1.197	48591.54
5	58600	1	1.094	64108.40
	CASH FLOW FUTURE VALUE (SUM OF C)			142291

jeff jeffy answered 2 years ago

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