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CFA Level 1
Quantitative Methods

Future Value Calculation of Cash Flows

Easy Time Value Of Money Present And Future Value

A company is considering an investment that requires an initial outlay of $5,000. The investment is expected to yield cash flows of $1,500 at the end of Year 1, $2,000 at the end of Year 2, and $2,500 at the end of Year 3. If the company desires to calculate the future value of these cash flows at the end of Year 3, and the relevant discount rate is 5%, what is the future value of the cash flows?

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