Given the following cash flows, what is the future value at year ten when compounded at an interest rate of 12.0%?
Year 0 1 5 10
Cash Flow $4,000 $3,000 $2,000 $1,000
A) $10,000.00
B) $25,267.31
C) $31,864.17
D) $11,948.32
Answer: B
Explanation: B) FV = Σ PV × (1 + r)n = $4,000 × (1.12)10 + $3,000 × (1.12)9 + $2,000 × (1.12)5 + $1,000 × (1.12)0 = $25,267.31.
You might also like to view...
Which of the following methods to developing a CSR agenda would most likely have a successful outcome?
A. A company's marketing team invents a creative slogan to emphasize the company's interest in and general support of "green" initiatives. B. The board of directors decides to offer 1% of after tax profits to an orphanage in Africa. C. The company's primary supplier reduces packaging by 10% and tells customers by printing this fact on the labels. D. The employees hold a company-wide meeting and brainstorming session, devise an internal and external waste reduction plan and a program to measure their results. E. The company executives hire a "green consultant" to come and evaluate the company's impact and suggest a plan for improvement.
Online marketing, facilitated by the Internet, by which marketers can interact directly with customers, and consumers can interact with advertisers and vendors best describes
A) market segmenting. B) interactive marketing. C) augmented reality. D) online brokering.