what is the value of 1/1/13 of the following cash flows course hero

What is the future value of a series of cash flows?

The future value, FV, of a series of cash flows is the future value, at future time N (total periods in the future), of the sum of the future values of all cash flows, CF.

What is the expected rate of return on cash flows?

This is your expected rate of return on the cash flows for the length of one period. If there is compounding, this is number of times compounding will occur during a period. 1 is the minimum. This is the frequency of the corresponding cash flow.

How much cash flow does the investment produce in each year?

The investment produces no cash flows for the first year. In the second year the cash inflow is $35,000. This inflow will increase to $55,000 and then $75,000 before ceasing permanently.

What is the cash inflow in the second year?

In the second year the cash inflow is $35,000. This inflow will increase to $55,000 and then $75,000 before ceasing permanently. Ginny requires a 10% rate of return and has a required discounted payback period of three years.

Calculator Use

Calculate the future value of a series of cash flows. More specifically, you can calculate the future value of uneven cash flows (or even cash flows).

Future Value of Cash Flow Formulas

The future value, FV, of a series of cash flows is the future value, at future time N (total periods in the future), of the sum of the future values of all cash flows, CF.