Future value of single or multiple cash flows, Finance Basics

Assignment Help:

Do your experts provide Future Value of Single or Multiple Cash Flows assignment help? I need urgent help in my college assignment.

Related Discussions:- Future value of single or multiple cash flows

Long term lenders - measuring business performance, Long Term Lenders - Mea...

Long Term Lenders - Measuring Business Performance Long term lenders These involve finances with loans, mortgages and debenture holders. These have both short and long

Bird-in-hand theory, Bird-in-hand Theory Advanced via John Leitner in ...

Bird-in-hand Theory Advanced via John Leitner in year 1962 and furthered with Myron Gordon in year 1963. Argues such shareholders are risk averse and prefer specific. Dividend

Calculate the incremental net present value, The following NPV's have been ...

The following NPV's have been calculated to determine if a compressor installation should be accelerated from Year 3 to Year 7. The compressor cost is $1,500,000. a. C

Tests of term structure of interest rates theories, Tests of Term Structure...

Tests of Term Structure of Interest Rates Theories Various tests have been conducted mainly in USA and they show that all the three (3) theories have some validity and therefo

Basic economic order quantity model , Basic economic order quantity (EOQ) m...

Basic economic order quantity (EOQ) model This model is one of the oldest and most commonly used in inventory control. It is based on a number of assumptions: The dem

Conservative approach - financing current assets, Conservative Approach - F...

Conservative Approach - Financing Current Assets An exact similar of asset life along with the life of the funds required to finance the asset may not be possible. A firm that

Objectives or goals of business, Objectives or Goals of Business 1. P...

Objectives or Goals of Business 1. Profit maximization - This is a traditional and a cardinal objective of a business. This is so for the following purpose: To

Compound interest and compound amount.., a debt off Rs1000 with interest at...

a debt off Rs1000 with interest at 10% compounded quarterly will be repaid by payments Rs. 200 at the end of 3 months and three equal payments at the end of 6 9 and 12 months. find

Working capital, #question.component.of working capital

#question.component.of working capital

Net present value method - example, Net Present Value Method - Example ...

Net Present Value Method - Example Jeremy limited wishes to expand its output by purchasing a new machine worth 170,000 and installation costs are estimated at 40,000/=. In t

Aliena

2/14/2013 12:17:57 AM

Future value of single or multiple cash flows

To determine the future value of cash flows, we must apply the compounding technique. Compounding may be yearly/annually, half-yearly, quarterly, monthly etc.

Future Value of Single Cash Flow

Future value can be calculated by the following formula:

FV_n = PV (1 + r)_n

Where

FV= Future value

PV= Present value

r = Rate of Interest

n = Number of periods

Example: FV of single cash flow compounded annually

Let us compute the future value of an investment of $ 2,000 compounded annually/yearly at the rate of 12%, after 4 years period.

FV	=	$ 2,000 x (1 + 0.12) ⁴
	=	$ 3,147.04

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages