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Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 1: Year 2: Year 3: Years 4 thP4-1 (similar to) Different cash flow. Given the following cash inflow at the end of each year, , what is the future value of

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Answer #1

a). FV = =1 [CF(i) * (1 + r)(n-i)]

= [$13,000 * (1 + 0.07)(7-1)] + [$21,000 * (1 + 0.07)(7-2)] + [$29,000 * (1 + 0.07)(7-3)] + [$160,000 * (1 + 0.07)(7-7)]

= $19,509.49 + $29,453.59 + $38,013.08 + $160,000 = $246,976.17

b). FV = =1 [CF(i) * (1 + r)(n-i)]

= [$13,000 * (1 + 0.09)(7-1)] + [$21,000 * (1 + 0.09)(7-2)] + [$29,000 * (1 + 0.09)(7-3)] + [$160,000 * (1 + 0.09)(7-7)]

= $21,802.30 + $32,311.10 + $40,935.87 + $160,000 = $255,049.27

c). FV = =1 [CF(i) * (1 + r)(n-i)]

= [$13,000 * (1 + 0.18)(7-1)] + [$21,000 * (1 + 0.18)(7-2)] + [$29,000 * (1 + 0.18)(7-3)] + [$160,000 * (1 + 0.18)(7-7)]

= $35,094.20 + $48,042.91 + $56,224.56 + $160,000 = $299,361.67

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