Havana, Inc. has identified an investment project with the following uneven cash flows: $0 at Year 0, $950 at Year 1, $1,180 at Year 2, $1,400 at Year 3, and $2,140 at Year 4. Assume the discount rate is 8 percent, what is the future value of these cash flows in Year 4? a) $4,167.62 b) $6,123.60 c) $5,670.00 d) $6,225.08

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6EB: The management of Ryland International Is considering Investing in a new facility and the following...
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Havana, Inc. has identified an investment project with the following uneven cash flows: $0 at Year 0, $950 at Year 1, $1,180 at Year 2, $1,400 at Year 3, and $2,140 at Year 4. Assume the discount rate is 8 percent, what is the future value of these cash flows in Year 4?

a) $4,167.62

b) $6,123.60

c) $5,670.00

d) $6,225.08

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