Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Production Budget
A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budge…
Question

Year Cash Inflow
1 14,000
2 19,000
3 31,000
4 0
5 0
6 0
7 130,000

what is the future value of this cash flow at

3%​,
11%​,

and

18​%

interest rates at the end of year​ 7

Expert Solution
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Step 1

Future value refers to the future value of a current asset based on a certain rate of interest.

It is important for every investor to know what will be the future worth of an asset if it is invested at a certain rate of interest. This enables the investor to make a sound investment decision based on his needs.

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