Havana Inc has identified an investment project with the fol

Havana, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 910 2 1,140 3 1,360 4 2,100 If the discounted rate is 8%, what is the future value of these cash flows in year 4? What is the future value at an interest rate of 11%? at 24%

Solution

Future value = 2100*1.08+ 1360*1.08^2 + 1140*1.08^3+910*1.08^4 =$6528.42

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