Learning Objective: 05-01 Determine the future and present value of investments

Question

Learning Objective: 05-01 Determine the future and present value of investments with multiple cash flows - what pages can I find an example (step by step) to assit me with this question
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

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Requirement 1:
Assume the discount rate is 8 percent, what is the future value of these cash flows in Year 4?

Explanation / Answer

FV8% = $910(1.08)3 + 1,140(1.08)2 + 1,360(1.08) + $2,100 = $6,044.83

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