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Suppose you expect to receive the following cash flow over the next 5 years: End of Year Cash Flow 1 20,000 2 22,000 3 30,000
Suppose you expect to receive the following cash flow over the next 5 years:
End of Year | Cash Flow |
1 | 20,000 |
2 | 22,000 |
3 | 30,000 |
4 | 24,000 |
5 | 36,000 |
Immediately after receiving these amounts, you will keep 50% of these cash flows for your own expenditure and deposit the remaining amount in a bank. You expect to earn 7% from the bank. Now, calculate how much would you receive at the end of 5 years from the bank? (must show the detailed calculation process. If need, don't use excel, show draft Otherwise, marks will be deducted)
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