Mail order business will generate cash flows of $10,000 at the end of each of the next 3 years, $20,000 at the end of year 4, $30,000 at the end of year 5 and $50,000 at the end of year 6. Given that other investments of equal risk earn 6% per annum, calculate the present value and future value of this investment. (Show all calculations supporting your answers).

Answer rating: 100% (QA)

To calculate the present value and future value of the cash flows well use the present value PV and ... View the full answer