Consider the following cash flows: YearCash Flow2 $22,900 3 40,900 5 58,900 Assume an interest rate of 9.7 percent per year. a.If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b.If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The value of the cash flow after a particular time period with the addition of the interest amount…

Answered: onsider the following cash flows:…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

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Consider the following cash flows:

Year	Cash Flow
2		$	22,900
3			40,900
5			58,900

Assume an interest rate of 9.7 percent per year.

a.	If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.	If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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