A) | Present Value | $ 1,200.40 | ||
Working: | ||||
Year | Cash Flow | Present value of 1 | Present Value of cash flow | |
a | b | c=1.07^-a | d=b*c | |
1 | $ 150.00 | 0.934579 | $ 140.19 | |
2 | $ 150.00 | 0.873439 | $ 131.02 | |
3 | $ 150.00 | 0.816298 | $ 122.44 | |
4 | $ 250.00 | 0.762895 | $ 190.72 | |
5 | $ 350.00 | 0.712986 | $ 249.55 | |
6 | $ 550.00 | 0.666342 | $ 366.49 | |
Total | $ 1,200.40 | |||
B) | Future Value | $ 1,801.48 | ||
Working: | ||||
Year | Cash Flow | Future value of 1 | Future Value of Cash Flow | |
a | b | c=1.07^(6-a) | d=b*c | |
1 | $ 150.00 | 1.40255 | $ 210.38 | |
2 | $ 150.00 | 1.31080 | $ 196.62 | |
3 | $ 150.00 | 1.22504 | $ 183.76 | |
4 | $ 250.00 | 1.14490 | $ 286.23 | |
5 | $ 350.00 | 1.07000 | $ 374.50 | |
6 | $ 550.00 | 1.00000 | $ 550.00 | |
Total | $ 1,801.48 |
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