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Calculating future value of the given investment

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Paradise, Inc., has identified an investment project with the following cash flows. If the discount rate is 17 percent, the future value of these cash flows in year 4 is $????.

Year Cash Flow
1 $1,275
2 950
3 875
4 625

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Solution Summary

The solution depicts the steps to calculate future value of an investment in the given case.

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Future Value of single cash flow=Present Value*(1+discount rate)^number of periods

Future Value of ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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