Explore BrainMass
Share

Explore BrainMass

    Future Value of Uneven Cash Flows

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    One year ago, the Beauty Skins Bhd deposited $3,600 in an investment account for the purpose of buying new equipment four years from today. Today, it is adding another $5,000 to this account. It plans to make a final deposit of $7,500 to the account next year. How much will be available when it is ready to buy the equipment, assuming it earns a 7% rate of return?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:38 am ad1c9bdddf
    https://brainmass.com/business/the-time-value-of-money/future-value-uneven-cash-flows-589135

    Solution Preview

    Future Value of Uneven Cash Flows

    One year ago, the Beauty Skins Bhd deposited $3,600 in an investment account for the purpose of buying new equipment four years from today. Today, it is adding another $5,000 to this account. It plans to make a final deposit of $7,500 to the account next year. How much will be available when it is ready ...

    Solution Summary

    This solution provides a detailed step-by-step solution for the calculation of the future value of a deposit, taking into account the number of years, the interest rate of return, and the present value of the deposit. The calculation is accompanied by an explanation of the terms and the process.

    $2.19