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Solar-light Inc. is considering a project with the following cash flows : ...

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Question

Finance

  1. Solar-light Inc. is considering a project with the following cash flows :

YEAR

Cash Flow

1

$800

2

$700

3

$600

4

$500
  1. Calculate the future value of these cash flows (end of year 4), if the interest rate is 12%.

  1. What will be the future value if the interest rate is changed to 16%?

Please answer a and b

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