Find the net present worth of the following cash flow series

Find the net present worth of the following cash flow series at an interest rate of 10% What is the future worth in 10 years of $5,000 at n=0, $10,000 at n=3 years and $8,000 at n=5 years if the interest rate is 12% per year? A project has an initial cost of 12 million. There are parts of the project that would required additional cost of 1.5 million every 3 years. If the interest rate is 9% per year compounded annually. A) what is the capitalizedequivalent of the annual cost of the project? B) What is the total present worth of the project?

Solution

1)

1000+ 2000/(1+0.1) +3000/(1+0.1)2 +4500 /(1+0.1)3 +1500/(1+0.1)4

1000+1818+2479.33+3380.91+1024.52

= 7884.7

2)

by using furture value calculatot

If today you were to invest $5,000.00 at a rate of 12%, you would have $15,529.24 at the end of 10 time periods (e.g. weeks, months, or years). In other words, a future value of $15,529.24 is equal to a present value of only $5,000.00.

If today you were to invest $10,000.00 at a rate of 12%, you would have $14,049.28 at the end of 3 time periods (e.g. weeks, months, or years). In other words, a future value of $14,049.28 is equal to a present value of only $10,000.00.

If today you were to invest $10,000.00 at a rate of 12%, you would have $14,049.28 at the end of 3 time periods (e.g. weeks, months, or years). In other words, a future value of $14,049.28 is equal to a present value of only $10,000.00.