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19 October, 20:53

Fuente, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,075 2 1,210 3 1,340 4 1,420 a. If the discount rate is 8 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) b. If the discount rate is 11 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) c. If the discount rate is 24 percent, what is the future value of the cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

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  1. 19 October, 23:55
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    Instructions are listed below

    Explanation:

    Giving the following information:

    Year1 = 1,075

    Year 2 = 1,210

    Year 3 = 1,340

    Year 4 = 1,420

    We need to use the following formula:

    FV = ∑PV * (1+i) ^n

    A) i=0.08

    FV = 6,083.35

    B) i=0.11

    FV = $6513.97

    C) i = 0.24

    FV = 8669.73
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