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Consider the following cash flows and interest rates: 0 1 2 3 4 r = 2.5% r = 1.5% r = 1.9% r = 2.4%
Consider the following cash flows and interest rates: 0 1 2 3 4 r = 2.5% r = 1.5% r = 1.9% r = 2.4% 5,000 5,000 5,000 a. Calculate the present value of these cash flows (at time 0). (3 marks) b. Calculate the future value of these cash flows (at time 4)
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