Question
Following is an example of a cash flow timeline developed using the Table Function within MS Word. Please use this example as a means to
Following is an example of a cash flow timeline developed using the Table Function within MS Word.
Please use this example as a means to develop a similar timeline in your answer to the following question.
Example only:
%
5%
6.5%
Year
0
1
2
3
CFi
$0
$1,000
$1,000
$1,000
Below are the expected cash flows and interest rates expected from an investment overthe next ten years.
Cash flows will occur at the end of the nominated years.
Cash Flows
Interest Rates
Year0
Years 1 - 2
8%
Year1
Year2
+$ 6,500
Year3
+$ 1,500
Years 3 - 8
6%
Year4
Year5
Year6
-$ 2,500
Year7
Year8
Year9
+$ 10,000
Years 9 - 10
7%
Year10
i.
Using the Table function within MS Word, draw a time line showing the above cash flows and interest rates (following the example above) (6 marks).
ii.
What will be thevalueofallthese cash flows at each of the following times:
-Time1
-Time5
-Time10
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