Imagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash flow...
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Imagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash flow profile shown in the table below. Imagineerings MARR is 25 %/year.
| End of Year | Cash Flow (M$) |
|---|---|
| 0 | -$12 |
| 1 | -$1 |
| 2 | $5 |
| 3 | $2 |
| 4 | $5 |
| 5 | $5 |
| 6 | $2 |
| 7 | $5 |
What is the future worth of this investment? $________ Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places (in millions of dollars). The tolerance is 0.2.
Answer is
| EOY | POS CF | NEG CF | NET CF | (F|P i%,n) | FW OF CF |
| 0 | -12 | -12 | 4.76837 | -57.2204 | |
| 1 | -1 | -1 | 3.8147 | -3.8147 | |
| 2 | 5 | 5 | 3.05176 | 15.2588 | |
| 3 | 2 | 2 | 2.44141 | 4.88282 | |
| 4 | 5 | 5 | 1.95313 | 9.76565 | |
| 5 | 5 | 5 | 1.5625 | 7.8125 | |
| 6 | 2 | 2 | 1.25 | 2.5 | |
| 7 | 5 | 5 | 1 | 5 | |
| SUM = | -15.8154 |
FW = -15.81
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