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(Solved): Goodyear Corp. is considering investing in a new piece of equipment. It will have the following cash ...



Goodyear Corp. is considering investing in a new piece of equipment. It will have the following cash flows. Year 1234 Cash Flow $885 1,010 1,380 2,175 a. If the discount rate is 3 percent, what is the future value of these cash flows at the end of Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 13 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Future value at 3 percent b. Future value at 11 percent C. Future value at 13 percent

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Goodyear Corp. is considering investing in a new piece of equipment. It will have the following cash flows. a. If the discount rate is 3 percent, what is the future value of these cash flows at the end of Year 4 ? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 13 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)


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a. Future value of cashflows @3% is calculated as follows:





So the future value @ 3% = 5634.97


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