Question
1) Crane, Inc., management expects the company to earn cash flows of $12,100, $14,200, $18,800, and $19,300 over the next four years. If the company
1) Crane, Inc., management expects the company to earn cash flows of $12,100, $14,200, $18,800, and $19,300 over the next four years. If the company uses an 7 percent discount rate, what is the future value of these cash flows at the end of year 4? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)
2) Jason Allen has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts at the end of each of the next five years: $10,870, $8,460, $9,120, $12,310, and $11,930. If the appropriate discount rate is 7.480 percent, what is the cost in todays dollars of the equipment Jason purchased today?
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