FV of multiple cash flows: Stiglitz Ltd is expecting the following cash flows starting at the end of the year-$113,245, $132,709, $141,554, and $180,760. If their opportunity cost is 9.6 per cent, find the future value of these cash flows. (Round to the nearest dollar.)

Question

Quizplus · Accepted Answer

The future value of each cash flow is calculated by compounding it at 9.6% for the number of years until the end of the last cash flow. Summing these future values gives the total future value of $799,549.

FV of Multiple Cash Flows: Stiglitz Ltd Is Expecting the Following