Reference no: EM132641
Question:
1. Trigen Corp. management will invest cash flows of $213,949, $1,405,364, $1,108,566, $818,400, $1,239,644, and $1,617,848 in research and development over the next 6 years. If the appropriate interest rate is 5.58 percent, what is the future value of these investment cash flows 6 years from today?
2. You prepare a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into their systems and is presenting to pay you $511,000 today, plus $511,000 at the end of each of the subsequent six years for permission to do this. If the appropriate interest rate is 7 percent, what is the current value of the cash flow stream that the company is offering you?