Question: Sample Test Problem 6.01 Sunland Inc., management is expecting a new project to start paying off, beginning at the end of next year. Cash flows

Sample Test Problem 6.01

Sunland Inc., management is expecting a new project to start paying off, beginning at the end of next year. Cash flows are expected to be as follows:

0 1 2 3 4 5
$438,676 $482,452 $468,455 $466,326 $538,444

If Sunland can reinvest these cash flows to earn a return of 9.0 percent, what is the future value of this cash flow stream at the end of 5 years? What is its present value?

Future Value:

Present Value:

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