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Question 1: Compute the future value and present value of Cash Flows (10 points) You need to use the functions built in in excel to
Question 1: Compute the future value and present value of Cash Flows | (10 points) | ||||||||
You need to use the functions built in in excel to answer the question. Manually fill in the answer will receive 0 point | |||||||||
a) What is the future value of these cash flows at the end of year 7 (Assume CFs occur at the end of each year)? | |||||||||
Year | CF | ||||||||
1 | 15,000 | ||||||||
2 | 35,000 | ||||||||
3 | 24,000 | ||||||||
4 | 17,000 | ||||||||
5 | 12,500 | ||||||||
6 | 35,800 | ||||||||
7 | 24,000 | ||||||||
Interest rate = | 8% | ||||||||
b) Compute the present value of the CFs in part (a) |
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