Question
Calculate the future values of the cash flows below in year 7 & present values of the cash flows (year = 0), if the discount
Calculate the future values of the cash flows below in year 7 & present values of the cash flows (year = 0), if the discount rate is 10%. Assume deposits were made at the end of the year.
Year | 1 | 3 | 5 | 7 |
Cash flows | 3,000 | 6,000 | 9,000 | 12,000 |
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To calculate the future value of cash flows in year 7 we can use the following formula FV CF x 1r...Get Instant Access to Expert-Tailored Solutions
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Cambridge International AS And A Level Mathematics Pure Mathematics 1 Coursebook
Authors: Sue Pemberton, Julian Gilbey
1st Edition
1108407145, 978-1108407144
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