Compute the future value and present value of Cash Flows You need to use the functions built
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Compute the future value and present value of Cash Flows | |||||||
You need to use the functions built in in excel to answer the question. Manually fill in the answer will receive 0 point | |||||||
a) What is the future value of these cash flows at the end of year 9 (Assume CFs occur at the end of each year)? |
Year | CF |
1 | 15,000 |
2 | 17,000 |
3 | 21,040 |
4 | 22,987 |
5 | 24,000 |
6 | 35,800 |
7 | 21,900 |
8 | 15,890 |
9 | 24,000 |
Interest rate = | 6% |
b) Compute the present value of the CFs in part a) |
c) Repeat part a and b with the cash flows occur at the beginning of the period instead. |
Year | CF |
1 | 15,000 |
2 | 35,000 |
3 | 24,000 |
4 | 17,000 |
5 | 12,500 |
6 | 35,800 |
7 | 24,000 |
8 | 15,890 |
9 | 20,000 |
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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