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The incoming cash flows amounting P 5 , 0 0 0 at the start of the 2 year andP 1 0 , 0 0 0

The incoming cash flows amounting P5,000 at the start of the 2 year andP10,000 at the start of the 6 year were expected. It was also projected thatthe interest rate will rise from 7% over the first three year period to 10% overthe next five years. What is the future worth of these cash flows at the end ofthe 8 year? ANS:22,529.36 show solution

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