For the cash flows shown, determine the future worth in year 5. Year Cash Flow($/year) Estimated i Per Year 0 5000 8% 1–4 6000 8% 5 9000 16% The future worth in 5 years is $

Question

Question

For the cash flows shown, determine the future worth in year 5.

The future worth in 5 years is $

Answer 1

Answer #1

Answer:

giventhat
FV=PV*(1+i)^n *(1+j)^m

i is for n year and j is for m year rate
and
FV=A*(P|A,i,n)

FV=5000*(1.08^4)*(1.16)+6000*(P|F,i,n)*(1.16)+9000
=5000*(1.08^4)*(1.16)+6000*4.779328*(1.16)+9000
=50154.9579
The future value is $50154.9579

Answer 2

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