What Is the Future Value of the Following Cash Flows

question 37

Multiple Choice

What is the future value of the following cash flows at the end of year 3 if the interest rate is 6%? The cash flows occur at the end of each year.
$$\begin{array} { | l | l | l | } \hline \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\hline £ 5,180 & £ 9,600 & £ 2,250 \\\hline\end{array}$$

• A)£15,916.78
• B)£18,109.08
• C)£18,246.25
• D)£19,341.02
• E)£19,608.07

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Definitions:

Instrumental Values

Basic convictions about modes of conduct and desirable end-states that act as guiding principles in one's life.

Terminal Values

End goals or desired outcomes in life that individuals strive to achieve, such as happiness, success, and prosperity.

Corporate Governance

A system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of a company's stakeholders.

Chief Executive Officer

The Chief Executive Officer (CEO) is the highest-ranking executive in a company, whose primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, and acting as the main point of communication between the board of directors and corporate operations.