Question: Q1. Read the following problem and apply the best method to find the cash flows by making efficient capital investment decisions Tommy Inc., has identified

Q1. Read the following problem and apply the best method to find the cash flows by making efficient capital investment decisions Tommy Inc., has identified an investment project with following cash flows. If the discount rate is 8%, what is the future value of cash flows in Year 4? What is the future value at a discount rate of 11% and at 24%? (10 marks)

Year

Cash Flow

1

1.375

2

1.495

3

1.580

4

1.630

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