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Suppose a company now can spend $15,000 on some investment that will produce $17,000 distributed over the next five years, as follows: Year 1 $3,000

Suppose a company now can spend $15,000 on some investment that will produce $17,000 distributed over the next five years, as follows:

  • Year 1 $3,000
  • Year 2 $5,000
  • Year 3 $4,000
  • Year 4 $3,000
  • Year 5 $2,000

Calculate the present and future value of the following year.

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