We need to calculate the FV of each of the cash flows at given required rates of return.
a) 7%
FV = 13000 * (1 + 7%)6 + 21000 * (1 + 7%)5 + 30000 * (1 + 7%)4 + 160000 * (1 + 7%)0
FV = 13000 * 1.50073 + 21000 * 1.40255+ 30000 * 1.31080 + 160000 * 1
FV = 19,509.49 + 29,453.59 + 39,323.88 + 160,000
FV = $248,287.0
b) 12%
FV = 13000 * (1 + 12%)6 + 21000 * (1 + 12%)5 + 30000 * (1 + 12%)4 + 160000 * (1 + 12%)0
FV = 13000 * 1.97382 + 21000 * 1.76234+ 30000 * 1.57352 + 160000 * 1
FV = 25,659.69 + 37,009.18 + 47,205.58 + 160,000
FV = $269,874.5
c) 16%
FV = 13000 * (1 + 16%)6 + 21000 * (1 + 16%)5 + 30000 * (1 + 16%)4 + 160000 * (1 + 16%)0
FV = 13000 * 2.43640 + 21000 * 2.10034+ 30000 * 1.81064 + 160000 * 1
FV = 31,673.15 + 44,107.17 + 54,319.18 + 160,000
FV = $290,099.5
Different Cash Flow. Give the following cash inflow at the end of each year, what is...
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