Christie, Incorporated, has identified an investment project with the following cash flows. Year Cash Flow 1 2 3 4 $ 1,020 1,250 1,470 2,210 a. If the discount rate is 6 percent, what is the future value of these cash flows in Year 4? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the future value at an interest rate of 14 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. What is the future value at an interest rate of 21 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Future value at 6 percent b. Future value at 14 percent c. Future value at 21 percent

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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Christie, Incorporated, has identified an investment project with the following cash flows.
Year Cash Flow
$ 1,020
1,250
1,470
2,210
1234
a. If the discount rate is 6 percent, what is the future value of these cash flows in Year 4?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. What is the future value at an interest rate of 14 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
What is the future value at an interest rate of 21 percent?
c.
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
a. Future value at 6 percent
b. Future value at 14 percent
c. Future value at 21 percent
Transcribed Image Text:Christie, Incorporated, has identified an investment project with the following cash flows. Year Cash Flow $ 1,020 1,250 1,470 2,210 1234 a. If the discount rate is 6 percent, what is the future value of these cash flows in Year 4? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the future value at an interest rate of 14 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. What is the future value at an interest rate of 21 percent? c. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. Future value at 6 percent b. Future value at 14 percent c. Future value at 21 percent
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