You have been offered the opportunity to invest in a project that will pay 1577

You have been offered the opportunity to invest in a

This preview shows page 4 - 5 out of 5 pages.

Question 3You have been offered the opportunity to invest in a project that will pay $1,577 per year at the end of years one through three and $8,318 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 17.48 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. Your Answer: Question 3 options: Answer Hide Check my answer
Enter: Rate 17.48% Nper 5 (since there are 5 years of cash flows from this investment) Pmt 0 PV 11541.45 (in Excel it is better to click on cell where the answer to Step 1 is instead of typing the number) Type 0 Get the answer 25827.36 (The answer appears in Excel as a negative number) =FV(17.48%,5,0,11541.45,0) = 25827.36

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture