# Time Value of Money

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

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#### Solution Preview

5.Â 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?

Â Â Â Â Â Â

$8,695.61 ...

#### Solution Summary

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

$2.49