K-Pack Brewery plans to save $115,000, $125,000, $150,000, $160,000, $170,000 and $200,000 at the end of each year for years 1 to 7, respectively.
Future value of uneven cash flows
Part A) If it earns 5.7 percent on its savings, how much will the firm have saved at the end of Year 4? At the end of Year 7? (Please include a cash flow time line with all variables with directional arrows moving to the left or right side and then summing to arrive at answer)
Present value of uneven cash flows
Part B) What would be the present value using the same cash flows, and interest, in years 1 through 7 for K-Pack Brewery? (Please solve by first setting up time line with formulas for uneven cash flows)