If today is Year 0, what is the future value of the following cash flows five years

Question:

If today is Year 0, what is the future value of the following cash flows five years from now? What is the future value 10 years from now? Assume a discount rate of 9 percent per year.

Year 235 Cash Flow $30,000 50,000 85,000

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

See More Books

Question Posted: Oct 03, 2023 12:49 PM

See More Questions

1. Suppose someone offered you your choice of two equally risky annuities, each paying $5,000 per year for 5 years. One is an annuity due, while the other is a regular (or deferred) annuity. If you...
What is the future value of $1,101 invested for 9 years at 7 percent compounded annually? 2. What is the present value of $18,664 to be received 7 years from today if the discount rate is 7 percent?...
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: September $ 52,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July $ 59,500...
A psychologist conducts an experiment on rats. She puts a rat in a cage having three rooms labeled 1, 2, and 3, as shown in Figure below. L Figure: a cage with 3 rooms and 5 doors. The rats are...
1. How would you describe the organizational culture at GM? Why was decision making so slowplodding as one analyst described it? 2. Why do you think the previous CEOs (Mr. Henderson) attempts to...
People often say things in an indirect way, but listeners can often still understand what they mean. See if you can detect these indirect statements in normal conversation. (Examples: Do you want to...
Predicting presidential elections. Refer to the Political Analysis (Vol. 17, 2009) study on predicting presidential elections, Exercise 14.44 (p. 14-38). Recall that a regression model with five...
Consider a horizontal, thin-walled circular tube of diameter D = 0.025 m submerged in a container of n-octadecane (paraffin), which is used to store thermal energy. As hot water flows through the...
Chloe's Cafe bakes croissants that it sells to local restaurants and grocery stores. The average costs to bake the croissants are $0.65 for 3,800 and $0.60 for 7,600. Required: If the total cost...
A local finance company quotes a 13 percent interest rate on one-year loans. So, if you borrow $20,000, the interest for the year will be $2,600. Because you must repay a total of $22,600 in one...
Given an interest rate of 6.5 percent per year, what is the value at date t = 7 of a perpetual stream of $500 payments that begin at date t = 13?
Pillar Products plc entered into the following transactions in the year to 31 March 2013. (i) The company secured a consultancy contract for $ .2 \mathrm{~m}$ with a customer. The terms of the...
The State Public Works Division consists of the Administrator, the State Public Works Board, the Public Works Section, and the Buildings and Grounds Section. The State Public Works Board consists of...
Everyone knows that health care costs are high. It is also known that people tend to spend less on health care if they spend their own money, which motivated the creation of flexible spending...
Write a essay that critically evaluates issues in financing health care by addressing the provided prompts. Educate operational leadership on why it is important to the overall bottom line of the...
What are the types of conflicts that individuals may have at work? Which type have you experienced the most? 2. What are some primary causes of conflict at work? 3. Explain how miscommunication might...
What program do you work with that has a budget? Navy JROTC Who helps to determine how the funds are allocated and spent? US Navy and St. Elizabeth ISD How did you find out the budget amount? Does...
Refer to Data Set 25 "Fast Food" and construct a 95% confidence interval estimate of the mean drive-through service time for McDonald's at dinner; then do the same for Burger King at dinner. Compare...
Big Jim Company sponsored a picnic for employees and purchased a propane grill equipped with a standard-sized propane tank for the picnic. To make sure there was enough propane for all the cooking...
Spot versus Forward Rates suppose the spot and three-month forward rates for the yen are 120.43 and 122.68, respectively. a. Is the yen expected to get stronger or weaker? b. What would you estimate...
Expected Spot Rate suppose the spot exchange rate for the Hungarian forint is HUF 221.53, the inflation rate in the United States will be 4.9 percent per year. It will be 8.6 percent in Hungary. What...
Capital Budgeting Lakonishok Equipment has an investment opportunity in Europe. The project costs 12 million and is expected to produce cash flows of 2.7 million in year 1, 3.5 million in year 2,...
Nitin is paid a base salary of $200 per week and commission at the rate of 3% for sales over $5000, 4% if his sales are over $8000, and 5% if sales are over $15,000. How much will Nitin earn in a...
Safa is paid a base salary of $1500 per month and a commission of 6% on all sales over $75,000. Last month, Safa's gross salary was $4440. What were her sales for the month? a$149,000 b$124,000...
Your regular hourly rate of pay is $15.86, and you are paid double time for all work on weekends and for any time over forty hours per week (Monday to Friday). Calculate your gross earnings for a...

If today is Year 0, what is the future value of the following cash flows five years

Question:

Year 235 Cash Flow $30,000 50,000 85,000

Step by Step Answer:

To calculate the future value of the cash flows we can use the following formula Future Value ...View the full answer

Fundamentals Of Corporate Finance

Students also viewed these Business questions