Question: 3. Future Value and Multiple Cash Flows [L01] Cannonier, Inc., has identified an investment project with the following cash flows. If the discount rate is

3. Future Value and Multiple Cash Flows [L01] Cannonier, Inc., has

3. Future Value and Multiple Cash Flows [L01] Cannonier, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? What is the future value at a discount rate of 8 percent? At 11percent and at 24 percent? Year CF Time till FV r=0.08 r=0.11 r=0.24 1 1075 3 2 1210 2 3 1340 1 4 1420 0 SUM of FV 4. Calculating Annuity Present Value [L01] An investment offers $4,350 per year for 15 years, with the first payment occurring one year from now. If the required return is 6 percent, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever? 15 Years 40 Years 75 Years Forever PV FV PMT RATE NPER 999.00

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