polynomial roots Return to the cash flow sequence in Table 15.1. W rite out the equation for the present value, as a function of r. Multiply both sides by (1 + r)6. Notice this gives you the equivalent, or future, value at the end of time t = 6. Naturally, if the future value is zero the present value is zero.

a] Detennine the future value, assuming (1 + r) = 1.143636. Interpret the result.
b] Detennine the future value, assuming (1 + r) = -.022533. Interpret the result.AppendixLO1