Year 3 return on investment is R45000, year 6 return is R90000, year 9 return is R115000. Interest rate is 11.59% and present value of outflows is R95000. what is the future value of cash inflows?
The future value is calculated using the formula;
Present Value, (PV) = R95,000
Interest Rates, (i) = 11.59%
Number of Periods, n = 3
By substitution;
= 95,000 * 1.3897
= R132,018.40
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