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Self- Assessment HW3D (FV of mixed stream) Question 1 You are given an investment to analyze

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Self- Assessment HW3D (FV of mixed stream)

Question 1

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

End of year

1. $1,175
2. $2,350
3. $984
4. $3,365
5. $1,066

What is the future value of this investment at the end of year five if 17.99 percent per year is the appropriate interest (discount) rate?

Round the answer to two decimal places.

Question 2

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 11.14 percent, compounded annually. How much is this investment worth at the end of year four?

End of year

1. $469
2. $1,114
3. $262
4. $177

Round the answer to two decimal places.

Question 3

You 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.