Question
Fuente, Incorporated, has identified an investment project with the following cash flows. Year Cash Flow 1 $ 500 2 900 3 1,125 4 1,350 a.
| Fuente, Incorporated, has identified an investment project with the following cash flows. |
| Year | Cash Flow |
|---|---|
| 1 | $ 500 |
| 2 | 900 |
| 3 | 1,125 |
| 4 | 1,350 |
| a. | If the discount rate is 9 percent, what is the future value of these cash flows in year 4? |
| b. | What is the future value at a discount rate of 18 percent? |
| c. | What is the future value at discount rate of 27 percent? |
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Financial Management Theory And Practice
Authors: Prasanna Chandra
10th Edition
9353166527, 978-9353166526
