Consider the following cash flows: Year Cash Flow $ 21,100 39,100 57,100 235 3 Assume an...
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Consider the following cash flows: Year Cash Flow $ 21,100 39,100 57,100 235 3 Assume an interest rate of 7.9 percent per year. a. If today is Year O, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year O, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Value in five years b. Value in ten years. Consider the following cash flows: Year Cash Flow $ 21,100 39,100 57,100 235 3 Assume an interest rate of 7.9 percent per year. a. If today is Year O, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year O, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Value in five years b. Value in ten years.
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SOLUTION a To calculate the future value of the cash flows five years from now we can use the formula for compound interest Future Value Present Value ... View the full answer
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
Posted Date:
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