Solar light Inc is considering a project with the following cash flows YEAR Cash Flow 1 $800 2 $700 3 $600 4 $500 a Calculate the future value of these cash flows in year 4 If the interest rate is 12 b What will be the present value if the interest rate is changed to 16 ...

a Calculation of Future value of these cash flows in year 4 FV 800 1012 3 700 1012 ...

Solar light Inc is considering a project with the following cash flows: YEAR Cash Flow 1 ............................................$800

Question:

Solar light Inc is considering a project with the following cash flows:
YEAR Cash Flow
1 ............................................$800
2 ............................................$700
3 ............................................$600
4 ............................................$500
a. Calculate the of these cash flows in year 4. If the interest rate is 12%
b. What will be the present value if the interest rate is changed to 16%?

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...