In: Finance
Rally, Inc., has identified an investment project with the following cash flows. If the discount rate is 5%, what is the future value of these cash flows in Year 5? Year Cash Flow 1 $137 2 $84 3 $247 4 $133 5 $114 Select one: a. $5,620.23 b. $987.37 c. $9,603.62 d. $675.73 e. $789.73
Future Value = 137(1.05)⁴ + 84(1.05)³ + 247(1.05)² + 133(1.05) + 114
Future Value = $789.73