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What is the value in year 12 of a $180 cash flow made in year 5 if interest rates are 10

percent?

FVN = PV (1 + i)N
FV(12-5) = PV (1 + i)(12-5)
FV7 = 180 (1 + 0.10)7
= 180 1.94871
= 350.76

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