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1) Assuming you will receive the cash flows listed below at the corresponding periods, assume a 5% rate. Period 0-Now Cash Flow 200 period 1
1) Assuming you will receive the cash flows listed below at the corresponding periods, assume a 5% rate.
Period 0-Now Cash Flow 200
period 1 cash flow 600
period 2 cash flow 500
period 3 cash flow 100
period 4 cash flow 400
a. What is the present Value of these cash flows?
(200/1.05)+(600/1.05)+(500/1.1025)+(100/1.157625)+(400/1.21550625)= 190.47619+571.428571+453.514739+86.3837599+329.08099= $1,630.88
b. What is the future value of these cash flows at year 4 (or when you get the last' 200 cash flow)?
I have done a myself but please check my work. i am not sure how to do b. thank you
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