Answer:
the future value of the cash flow in year 4 is $5,632.73
Explanation:
The computation of the future value of the cash flow in year 4 is as follows:
= $1,075 × (1.08^3) + $1,210 × (1.08^2) + $1,340 × (1.08^1) + $1,420 ×(1.08^0)
= $1,354.19 + $1,411.34 + $1,447.20 + $1,420
= $5,632.73
Hence, the future value of the cash flow in year 4 is $5,632.73
The same is to be considered and relevant
