Homework #3D (FV of mixed stream)

Finance 330

Question 1 (1 point)

You are given an investment to analyze. The cash flows from this investment are

End of year

1. $1,713
2. $5,622
3. $632
4. $1,886
5. $942

What is the future value of this investment at the end of year five if 10.69 percent per year is the appropriate interest (discount) rate?

Round the answer to two decimal places.

Question 3 (1 point)

You have been offered the opportunity to invest in a project that will pay $2,556 per year at the end of years one through three and $9,596 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 16.14 percent per year. What is the future value of this cash flow pattern at the end of year five?

Round the answer to two decimal places.

Homework #3D (FV of mixed stream)

Finance 330

Homework #3D (FV of mixed stream)  2

Finance 330

Question 2 (1 point)

You have just purchased an investment that generates the cash flows shown below for the next four years. You are able reinvest these cash flows at 9.95 percent, compounded annually. How much is this investment worth at the end of year four?

End of year

1. $304
2. $820
3. $372
4. $293

Round the answer to two decimal places.