Question
In: Finance
Rally, Inc., has identified an investment project with the following cash flows. If the discount rate...
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
Solutions
Expert Solution
Future Value = 137(1.05)⁴ + 84(1.05)³ + 247(1.05)² + 133(1.05) + 114
Future Value = $789.73
jeff jeffy answered 2 years agoRelated Solutions
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1. Havana, Inc., has identified an investment project with the
following cash flows. If the discount rate is 5 percent, what is
the future value of these cash flows in Year 4? (Hint: Be careful
with the number of periods.) If the picture doesn't load, the cash
flows shown in the picture are as follows: 910 in year 1; 1140 in
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If the discount rate is 9 percent, what is the future value of
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(Click to
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(Click to
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(Click...
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