2. Havana, Inc., has identified an investment project with the following cash fl

Question

2. Havana, Inc., has identified an investment project with the following cash flows. Year Cash Flow 2 1,280 3 1,500 4 2,240 Requirement 1: If the discount rate is 7 percent, what is the future value of these cash flows in Year 4? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Future value $ Requirement 2: What is the future value at an interest rate of 13 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Future value $ Requirement 3: What is the future value at an interest rate of 22 percent? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Future value $

Explanation / Answer

year cash flow FV, r=7 r=13 r=22 1 1050 1286.295 1515.042 1906.64 2 1280 1465.472 1634.432 1905.152 3 1500 1605 1695 1830 4 2240 2240 2240 2240 FV= 6,596.76 7,084.47 7881.79 FVs are : 6,596.76 7,084.47 7881.79

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