Question

you are expecting annual cash flows 80000inyear1to 5 and 95000in year 6-20 and 105000inyear21-50 if the rate of interest is 10%compounded annually calculate future value?

Answer 1

FV of 80000 for 5 years	$488,408.00
FV at Year 50	$35,600,295.36
FV of 95000 for 15 years	$3,018,385.76
FV at Year 50	$52,669,027.35
Fv of 105000 for 30 years	$17,271,872.38
Total FV at year 50	$105,541,195.08

Final answer =

$105,541,195.08

Workings

D Book1 - Excel Sign in - 0 X AutoSave 0 File Home H Draw - Page Layout Insert Formulas Data Review View Help Tell me what you want to do Comments = = Calibri BIU - -11AA - - A - = E a b 3- General $ -% Insert - Delete - Format - Share 2 J- Z . Sort & Find & Filter Select Editing Conditional Format as Formatting Table Cell Styles Clipboard Font Number Styles Cells Alignment FV of 80000 for 5 years f - A FV of 80000 for 5 years FV at Year 50 |=FV(10%,5,-80000) =FV(10%,45,,-C1) FV of 95000 for 15 years FV at Year 50 =FV(10%,15,-95000) =FV(10%,50-20,,-C4) Fv of 105000 for 30 years =FV(10%,30,-105000) Total FV at year 50 =C2+C5+C7