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Use the following set of cash flows for the questions below: Table A Year Cash Flow 1 $5,973 2 $18,662 3 $61,839 4 $66,528 5
Use the following set of cash flows for the questions below:
Table A | |
Year | Cash Flow |
1 | $5,973 |
2 | $18,662 |
3 | $61,839 |
4 | $66,528 |
5 | $68,052 |
6 | $73,559 |
- Using the cash flows in Table A, determine the future value of the cash flow stream 15 years from now. Use an opportunity cost of 12%. (Hint: negate the PVNPVanswer before finding the FV.)
- Using the cash flows in Table A, determine the present value of the cash flow stream at the following discount rates: 3%, 8%, 12%, 18%, and 22%. (Use a data table to complete these calculations.)
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