Answer:
Year 1 = $1,100
Year 2 = $1,330
Year 3 = $1,550
Year 4 = $2,290
(a) If the discount rate is 6 percent, then the future value of these cash flows in Year 4:
To solve this problem, we must find the FV of each cash flow and add them. To find the FV of a lump sum, we use:


= $6737.51
(b) If the discount rate is 14 percent, then the future value of these cash flows in Year 4:

= $7415.17
(c) If the discount rate is 21 percent, then the future value of these cash flows in Year 4:

= $8061.47
Answer:
275
Explanation:
You will add all the figures;that is;44+67+91+18+55=275
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Answer:
2.5 years
Explanation:
The payback method calculates how many years it will take the company to recover the investment's cost without considering any discount rate. The formula sued to calculate the payback period is:
payback period = investment cost / annual cash flow
payback period = $5,000 / $2,000 = 2.5
A retail store is one that sells goods to consumers