FV of multiple cash flows: Shane Matthews has invested in an investment that will pay him $6,200, $6,450, $7,225, and $7,500 over the next four years. If his opportunity cost is 10 per cent, what is the future value of the cash flows he will receive? (Round to the nearest dollar.)

Question

Quizplus · Accepted Answer

The future value of each cash flow is calculated by compounding it at the opportunity cost rate of 10% for the remaining years. The sum of these future values gives the total future value of the cash flows.

FV of Multiple Cash Flows: Shane Matthews Has Invested in an Investment