Consider the following investment cash flows with the interest rate of 9% compounded annually. End of Year Net Cash Flow End of Year Net Cash Flow 0 $0 4 $200 1 $500 5 − $100 2 − $100 6 − $100 3 $800 7 $700 Find the present worth of the cash flows using the actual cash flows. Find the future worth of this cash flow series using the actual cash flows. Find the future worth using the present worth.
Consider the following investment cash flows with the interest rate of 9% compounded annually. End of Year Net Cash Flow End of Year Net Cash Flow 0 $0 4 $200 1 $500 5 − $100 2 − $100 6 − $100 3 $800 7 $700 Find the present worth of the cash flows using the actual cash flows. Find the future worth of this cash flow series using the actual cash flows. Find the future worth using the present worth.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 29P
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Question
Consider the following investment cash flows with the interest rate of 9% compounded annually.
End of Year |
Net Cash Flow |
End of Year |
Net Cash Flow |
0 |
$0 |
4 |
$200 |
1 |
$500 |
5 |
− $100 |
2 |
− $100 |
6 |
− $100 |
3 |
$800 |
7 |
$700 |
- Find the present worth of the cash flows using the actual cash flows.
- Find the future worth of this cash flow series using the actual cash flows.
- Find the future worth using the present worth.
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