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Fuente, Incorporated, has identified an investment project with the following cash flows. Year Cash Flow 1 $ 650 2 800 3 1,175 4 1,400 a.
| Fuente, Incorporated, has identified an investment project with the following cash flows. |
| Year | Cash Flow |
|---|---|
| 1 | $ 650 |
| 2 | 800 |
| 3 | 1,175 |
| 4 | 1,400 |
| a. If the discount rate is 11 percent, what is the future value of these cash flows in year 4? Options: 4,578.89 ; 4,025 ; 5,082.57 ; 4,525.65 ; 4,632.72 |
| b. | What is the future value at a discount rate of 17 percent? Options: 4,910.92 ; 4,025 ; 5,745.77 ; 4,854.06 ; 4,968.39 |
| c. | What is the future value at discount rate of 26 percent? Options: 5,450.82 ; 4,025 ; 6,868.04 ; 5,514.02 ; 5,388.28 |
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The Handbook Of Credit Portfolio Management
Authors: Greg Gregoriou, Christian Hoppe
1st Edition
0071598340, 978-0071598347
