Imagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash flow...
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Finance
Imagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash flow profile shown in the table below. Imagineerings MARR is 25 %/year.
End of Year
Cash Flow (M$)
0
-$12
1
-$1
2
$5
3
$2
4
$5
5
$5
6
$2
7
$5
What is the future worth of this investment? $________ Carry all interim calculations to 5 decimal places and then round your final answer to 2 decimal places (in millions of dollars). The tolerance is 0.2.
Answer is
EOY
POS CF
NEG CF
NET CF
(F|P i%,n)
FW OF CF
0
-12
-12
4.76837
-57.2204
1
-1
-1
3.8147
-3.8147
2
5
5
3.05176
15.2588
3
2
2
2.44141
4.88282
4
5
5
1.95313
9.76565
5
5
5
1.5625
7.8125
6
2
2
1.25
2.5
7
5
5
1
5
SUM =
-15.8154
FW = -15.81
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