Explore BrainMass

Explore BrainMass

    Time Value of Money

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

    You are considering a project with the following cash flows:
    Year Cash flow
    1 5600
    2 9000
    3 2000

    5. What is the present value of these cash flows, given an 11% discount rate?
    $8,695.61
    $8,700.89
    $13,732.41
    $13,812.03
    $19,928.16

    6. What is the future value of the following cash flows at the end of year 3 if the interest rate is 7.25%? The cash flows occur at the end of each year.

    Year Cash flow
    1 6800
    2 2100
    3 0

    $8,758.04
    $8,806.39
    $10,073.99
    $10,314.00
    $10,804.36

    © BrainMass Inc. brainmass.com March 4, 2021, 8:56 pm ad1c9bdddf
    https://brainmass.com/business/the-time-value-of-money/time-value-of-money-205147

    Solution Preview

    5. You are considering a project with the following cash flows:
    Year Cash flow
    1 5600
    2 9000
    3 2000

    What is the present value of these cash flows, given an 11% discount rate?
          

    $8,695.61 ...

    Solution Summary

    Calculates Present Value of Cash flow, Future Value of Cash flow

    $2.49

    ADVERTISEMENT