Calculate with excel formula and show the formula: the future value of the following cash flow stream if the opportunity cost rate is 8%; $ 100, at the end of the first year, $ 200 at the end of the second year, $ 500 at the end of the third year, and $ 650 at the end of the 4th. year.

Calculate with excel formula and show the formula: the future value of the following cash flow stream if the opportunity cost rate is 8%; $ 100, at the end of the first year, $ 200 at the end of the second year, $ 500 at the end of the third year, and $ 650 at the end of the 4th. year.

 

answer:

a b a*b
Year Cash flow FV Factor FV of Cash flow FV Formula
1 100 1.259712 125.9712 =(1.08)^3
2 200 1.1664 233.28 =(1.08)^2
3 500 1.08 540 =(1.08)^1
4 650 1 650 =(1.08)^0
Future value 1549.2512

 

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