Problem 5. Your firm is evaluating a project that should generate revenue of P4,600 in year one, P5,200 in year two, P5,900 in year three, and P5,700 in year four. The firm receives each cash flow at the end of each year. If your firm's required return is 12%, compounding semi-annually, what is the future value of these cash flows at the end of year four?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
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Problem 5.
Your firm is evaluating a project that should generate revenue of P4,600 in year
one, P5,200 in year two, P5,900 in year three, and P5,700 in year four. The firm
receives each cash flow at the end of each year. If your firm's required return is
12%, compounding semi-annually, what is the future value of these cash flows at
the end of year four?
Transcribed Image Text:Problem 5. Your firm is evaluating a project that should generate revenue of P4,600 in year one, P5,200 in year two, P5,900 in year three, and P5,700 in year four. The firm receives each cash flow at the end of each year. If your firm's required return is 12%, compounding semi-annually, what is the future value of these cash flows at the end of year four?
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