Find the future value at the end of year 3 of the following stream
of cash flows received at the end of each year, assuming the firm
can earn 8 percent on its investments.
Year Amount
1 $10,000
2 16,000
3 19,000
A. $45,000
B. $53,396
C. $47,944
D. $56,690
Note : 1) Question said cash flows recieved at year
ends.
2) Question asked for 'future value'
solution:
10000(1.08)^2 + 16000(1.08)^1 + 19000 = $47,944
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