Answer:
Total= $77,153
Explanation:
Giving the following information:
Cullumber, Inc., management expects the company to earn cash flows of $12,900, $16,300, $18,600, and $19,800 over the next four years.
The discount rate is 10%.
To calculate the future value, we need to use the following formula for each cash flow:
FV= PV*(1+i)^n
Cf1= 12,900*1.1^3= 17,169.9
Cf2= 16,300*1.1^2= 19,723
Cf3= 18,600*1.1= 20,460
Cf4= 19,800
Total= $77,153
