In: Accounting
A company invested Rs. 1000 each year for the first 5 years.
Then the amount decreased by Rs.
50 each year for the next 4 years. Find the future value at the end
of cashflow if interest rate is
10%/year
Year | Cash inflow (outflow) | Table Factor | Present Value of Cash Flows | Cumulative present value of cash flows |
1 | -1000 | 0.91 | -909.09 | -909.09 |
2 | -1000 | 0.83 | -826.45 | -1,735.54 |
3 | -1000 | 0.75 | -751.31 | -2,486.85 |
4 | -1000 | 0.68 | -683.01 | -3,169.87 |
5 | -1000 | 0.62 | -620.92 | -3,790.79 |
6 | -950 | 0.56 | -536.25 | -4,327.04 |
7 | -900 | 0.51 | -461.84 | -4,788.88 |
8 | -850 | 0.47 | -396.53 | -5,185.41 |
9 | -800 | 0.42 | -339.28 | -5,524.69 |
Present Value | -5,525.00 | |||
Future Value | -13,027.66 | "=-5,525*(1.1)^9" |