What is the future value of the following set of cash flows, discounted at 10% per...

What is the future value of the following set of cash flows, discounted at 10% per year? Year 0 1 2 3 4 5 CF 0 50 40 30 20 10

Expert Solution

Future value of annual cash flows are calculated as follows:

	Year	Cash flows	Future Value of 1	Future Value of cash flows
	a	b	c=1.10^(5-a)	d=b*c
	0	0	1.6105	0
	1	50	1.4641	73.21
	2	40	1.3310	53.24
	3	30	1.2100	36.30
	4	20	1.1000	22.00
	5	10	1.0000	10.00

		Total		194.75

Thus,

	Future Value of cash flows will be			194.75

jeff jeffy answered 3 years ago

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What is the future value of the following set of cash flows, discounted at 10% per...

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