In: Finance
Canine, Inc., has identified an investment project with the
following cash flows. If the discount rate is 9 percent for the
first 2 years and 7% for the years after, beginning with year 3,
what is the future value of these cash flows in Year 5? What is the
future value of the cash flows in year 10? What is the present
value of the cash flows?
Year
Cash Flow
1
$1,075
2
$1,235
3
$1,510
4
$1,965
5
0
6
0
7
$10,000