Future value of single or multiple cash flows, Finance Basics

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

 

Posted Date: 2/14/2013 12:16:16 AM | Location : United States





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:

FVn      =          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

 

Posted by Aliena | Posted Date: 2/14/2013 12:17:57 AM


Related Discussions:- Future value of single or multiple cash flows, Assignment Help, Ask Question on Future value of single or multiple cash flows, Get Answer, Expert's Help, Future value of single or multiple cash flows Discussions

Write discussion on Future value of single or multiple cash flows
Your posts are moderated
Related Questions
Explain about commercial banks in depository institutions. Commercial banks: Commercial banks accept deposits or liabilities to create loans or assets and to buy governme

Underwriting - Stock Market 1. This is the supposition of risk relating unsubscribed shares 2. When new shares are issued, they might be beneath -written or unsubscribed. A

give an introduction about stock exchage in india,,includig BSE

DEFINE THE TERM OPTION IN DETAIL?

what are the modern methods of evaluating capital projects? how they different from old methods?

Risk Adjusted Discounting Rate - Methods of Computing Cost of Capital This method is used to establish the discounting rate to be used for a provided project. The cost of capi

What are the Functions of Stock Exchange Main functions performed b stock exchange are as follows: (1) Providing Liquidity and Marketability to existing securities: Sto

Question: a) An oil well now produces 75000 barrels per year. The well will produce for 21 years more, but production will decline by 3.7% per year. Oil prices however, will in

Basic EOQ Model The basic inventory decision model is Economic Order Quantity or called EOQ model. This model is specified via the following equation as: Whereas:Q is

Attributes of venture capital Equity participation Venture Capital participates with direct purchase of shares or fixed return securities as debentures and prefere