Goodyear Corp. is considering investing in a new piece of equipment. It will have the following...
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Goodyear Corp. is considering investing in a new piece of equipment. It will have the following cash flows. Year 1 2 Cash Flow $885 1,010 1,380 2,175 a. If the discount rate is 3 percent, what is the future value of these cash flows at the end of Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 13 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Future value at 3 percent b. Future value at 11 percent C. Future value at 13 percent Goodyear Corp. is considering investing in a new piece of equipment. It will have the following cash flows. Year 1 2 Cash Flow $885 1,010 1,380 2,175 a. If the discount rate is 3 percent, what is the future value of these cash flows at the end of Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 13 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Future value at 3 percent b. Future value at 11 percent C. Future value at 13 percent
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To calculate the future value of the cash flows we can use the formula for the future value of a cas... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
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