Question

Different cash flow.  Given the following cash inflow at the end of each​ year, what is the future value of this cash flow at 3 %​, 8 %​, and 16​% interest rates at the end of year​ 7? Year​ 1: ​$12,000 Year​ 2: ​$21,000 Year​ 3: ​$31,000 Years 4 through​ 6: ​$0 Year​ 7: ​$150,000 What is the future value of this cash flow at 3​%, 8% and 16% interest rate at the end of year​ 7?

Answer 1

Hello Sir/ Mam

(a)

NPV			3%
Time	Cashflows	FVF	FV
0	0	1.2299	$0.00
1	$12,000.00	1.1941	$14,328.63
2	$21,000.00	1.1593	$24,344.76
3	$31,000.00	1.1255	$34,890.77
4	$0.00	1.0927	$0.00
5	$0.00	1.0609	$0.00
6	$0.00	1.0300	$0.00
7	$1,50,000.00	1.0000	$1,50,000.00
FV			$2,23,564.16

(b)

NPV			8%
Time	Cashflows	FVF	FV
0	0	1.7138	$0.00
1	$12,000.00	1.5869	$19,042.49
2	$21,000.00	1.4693	$30,855.89
3	$31,000.00	1.3605	$42,175.16
4	$0.00	1.2597	$0.00
5	$0.00	1.1664	$0.00
6	$0.00	1.0800	$0.00
7	$1,50,000.00	1.0000	$1,50,000.00
FV			$2,42,073.54

(c)

NPV			16%
Time	Cashflows	FVF	FV
0	0	2.8262	$0.00
1	$12,000.00	2.4364	$29,236.76
2	$21,000.00	2.1003	$44,107.17
3	$31,000.00	1.8106	$56,129.82
4	$0.00	1.5609	$0.00
5	$0.00	1.3456	$0.00
6	$0.00	1.1600	$0.00
7	$1,50,000.00	1.0000	$1,50,000.00
FV			$2,79,473.75

I hope this solves your doubt.

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