Question: Why in this solution did we take the numbers from the middle and multiply them by 10,000 (why not multiply all the ratios)? A Expert
A Expert in Accounting Answer to the above question is:- Future Value of cash flows: = $150000 * (1.03) * (1.03) * (1.03) * (1.05) * (1.05) * (1.05) * (1.05) * (1.04) * (1.04) * (1.04) = $224109.44 and = $10,000 * (1.05) * (1.05) * (1.04) * (1.04) * (1.04) = $12401.63 Value of X = $224109.44 + $12401.63 = $236511.1 Thankyou:) Please contact for futher queries. 2 2. Based on the interest rates and cash flows shown in the cash flow diagram, determine the value of SX SX $10,000 1 2 3 4 5 6 7 8 9 10 398 3% 598 596 596 5% 496 4% 496 39 $150.000 F = 8, +2 +63 F.A
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