Function: FV, SUM; Cell referencing
Problem 6.19 - Future Value with Multiple Cash Flows
PROBLEM
Trigen Corp. management will invest $331,000, $616,450, $212,775, $818,400,
$1,239,644, and $1,617,848 in research and development over the next six years.
The interest rate is 6.75%
Year 1 Investment
$ 331,000
Year 2 Investment
$ 616,450
Year 3 Investment
$ 212,775
Year 4 Investment
$ 818,400
Year 5 Investment
$ 1,239,644
Year 6 Investment
$ 1,617,848
Interest Rate
6.75%
Student Work Area
Required: Provide input into cells shaded in gray in this template.
Use the FV function in excel to determine the future value of each investment eight years from
today by referencing the appropriate cells in the Problem area. Use the SUM function to
determine the future value of all the investments combined by referencing the appropriate cells
in the Student Work Area. Do not leave any portion of the FV function blank - insert 0's if you have
not been given the requested information.
Investment
Year 1 Investment
Year 2 Investment
Year 3 Investment
Year 4 Investment
Year 5 Investment
Year 6 Investment
The total future value of these investments is:
Future Value