Trigen Corp. management will invest cash flows of $213,159, $476,923, $1,335,105
ID: 2703135 • Letter: T
Question
Trigen Corp. management will invest cash flows of $213,159, $476,923, $1,335,105, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 5.85 percent, what is the future value of these investment cash flows six years from today? (Round answer to 2 decimal places, e.g. 15.25.)
Future value $
Trigen Corp. management will invest cash flows of $213,159, $476,923, $1,335,105, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 5.85 percent, what is the future value of these investment cash flows six years from today?Explanation / Answer
Future Value = 213,159*(1+.0585)^5 + 476,923*(1+.0585)^4 + 1,335,105*(1+.0585)^3 + $818,400*(1+.0585)^2 + 1,239,644*(1+.0585)^1 + 1,617,848 = $6,312,300.76