What Is the Future Value of the Following Cash Flows

question 42

Multiple Choice

What is the future value of the following cash flows in year 5 with an interest rate of 6%? $$\begin{array} { | c | c | } \hline \text { Year } & \text { Cash Flow } \\\hline 1 & \$ 200 \\\hline 2 & \$ 400 \\\hline 3 & \$ 600 \\\hline 4 & \$ 800 \\\hline 5 & \$ 1000 \\\hline\end{array}$$

• A)$3,251.06
• B)$3,446.13
• C)$3,067.04
• D)$3,000.00
• E)$3,180.00

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Definitions:

Employee Morale

The overall satisfaction, outlook, and feelings of well-being that an employee holds in the workplace.

Product Quality

A measure of the attributes or characteristics of a product that fulfills the requirements, expectations, or specifications set by customers and regulations.

Net Present Value

A method used in capital budgeting to analyze the profitability of a projected investment or project by calculating the difference between the present value of cash inflows and outflows.

Present Value Factors

Factors used in discounting future cash flows to determine their present value, helping in the assessment of the value of investments today.