Question

At a rate of 19.5%, what is the future value of the following cash flow stream?

Years: 0 1 2 3 4

CFs: $0 $75 $225 $0 $300

a. $644

b. $914

c. $719

d. $794

e. $749

Answer 1

Period	Cash flows	[email protected]%	Future value
0	$                       -	2.0393	$                               -
1	$                      75	1.7065	$                            128
2	$                   225	1.4280	$                            321
3	$                       -	1.1950	$                               -
4	$                   300	1.0000	$                            300
Future value			$       749