Ivanhoe, Inc., management is expecting a new project to start paying off beginning at the end of next year. Cash flows are expected to be as follows: 8.00% $432676 Future value If Ivanhoe can reinvest these cash flows to earn a return of 8.00 percent, what is the future value of this cash flow stream at the end of 5 years? What is its present value? (Round answers to 2 decimal places, e.g. 52.75. Do not round factor values.) $ Year Present value $ $473452 $484455 $486326 $544444

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
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Problem 22E
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Ivanhoe, Inc., management is expecting a new project to start paying off beginning at the end of next year. Cash flows are expected to
be as follows:
8.00%
$432676 $473452
Future value
Present value
$
2
If Ivanhoe can reinvest these cash flows to earn a return of 8.00 percent, what is the future value of this cash flow stream at the end of
5 years? What is its present value? (Round answers to 2 decimal places, e.g. 52.75. Do not round factor values.)
LA
$
5
Year
$484455 $486326 $544444
Transcribed Image Text:Ivanhoe, Inc., management is expecting a new project to start paying off beginning at the end of next year. Cash flows are expected to be as follows: 8.00% $432676 $473452 Future value Present value $ 2 If Ivanhoe can reinvest these cash flows to earn a return of 8.00 percent, what is the future value of this cash flow stream at the end of 5 years? What is its present value? (Round answers to 2 decimal places, e.g. 52.75. Do not round factor values.) LA $ 5 Year $484455 $486326 $544444
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