question 6.q

again at 15 percent per year d. Now assume you start investing for your retirement when you turn 30 years old and analyze the situation under rate of return assumptions of (G) 8 percent, (ii) 10 percent, and (i) 15 percent. e. Repeat the analysis by assuming that you start investing when you are 35 years old. Sample Test Problems 6.1 Freisinger, Inc, management is expecting a new project to start paying off, beginning at the end of next year. Cash flows are expected to be as follows: 0 7.8% $433,676 $478,452 $475,455 $478,326 $535,444 If Freisinger can reinvest these cash flows to earn a return of 7.8 percent, what is the future value of this cash flow stream at the end of five years? What is its present value