The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $5,600 will be worth $8,228.24 five years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 6.40% 8.00% 6.81% 0.29% If an investment of $40,000 is earning an interest rate of 12.00%, compounded annually, then it will take for this investment to reach a value of $66,610.25-assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true-assuming that no additional deposits or withdrawals are made? An investment of $50 at an annual rate of 5% will return a higher value in five years than $25 invested at an annual rate of 10% in the same time. An investment of $25 at an annual rate of 10% will return a higher value in five years than $50 invested at an annual rate of 5% in the same time. A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and variable in amount, but the concept of the time value of money will continue to apply. Consider the following case: The Purple Lion Beverage Company expects the following cash flows from its manufacturing plant in Palau over the next six years: The CFO of the company believes that an appropriate annual interest rate on this investment is 9%. What is the present value of this uneven cash flow stream, rounded to the nearest whole dollar? $600,000$1,395,097$1,975,000$1,775,000