An investment has the following cash flow series where interest is 8 percent.

end of > 0,1,3,4,5,6,7,8

cash flow--> $300, $300, $600, -$500, -$300, $0, $800, $700, $600

a) determine the present worth of the series.

b) determine the future worth of the series at the end of year 8.

c) find the worth of the series at the end of year 2.

show work. not a chart from excell.

Present value:                         1711.49

At the end of year two:           1,273.92

At the end of the 8th year:      3167.86

Explanation:

We will use the value of present value of a lump sum on each cash flow, then add them all together for the present value.

Example for 6th Year

Maturity  800.00

time  6.00

rate  0.08000

PV   504.1357

Year  //  Cashflow //  Discounted cash flow

0300  300

1300  277.78

2600   514.40

3-500-396.92

4-300-220.51

50               0

6800  504.14

7700          408.44

8600  324.16

         1711.49

For future value, we will adjust using the future value of a lump sum:

Again, using the 6th year as example:

Principal800.00

time2.00 (it capitalize trought 7th and 8th years)

rate0.08000

Amount933.12

Year // Cashflow // Future value

0300555.28

1300514.15

2600952.12

3-500-734.66

4-300-408.15

50               0

6800   933.12

7700           756

8600  600      

              3167.86

At the end of 2nd year:

Year // Cashflow // Future value

0300   349.92

1300   324

2600  600      

     Total           1,273.92

none

explanation:

we're are the selections to pick from?