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You are considering an investment that will pay you $1,238 in one year, $2,394 in two years and $3,843 in three years. If you
You are considering an investment that will pay you $1,238 in one year, $2,394 in two years and $3,843 in three years. If you want to earn 13% on your money, how much will you be willing to pay? Round and answer to the nearest cent (two places to the right of the decimal point). Do not include the dollar sign ($). If you could reinvest the cash flow stream of $934, $869, $1,047, $1,041, $1,163, $849, $957, and $1,405 at 11.8% interest, how much will you have from this investment in 8 years? (In other words, what is the future value of this stream of cash flows?) Note that the cash flows are not necessarily the same as the previous problem's cash flows. The cash flow stream starts in one year; so, the last cash flow is 8 years from now. Round to the nearest cent.
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