Question:
1. Trigen Corp. management can invest cash flows of $213,949, $1,405,364, $1,108,566, $818,400, $1,239,644, and $1,617,848 in development and research over the next six years. If the appropriate interest rate is 5.58 percent, Evaluate the future value of these investment cash flows six years from today?
2. You prepare a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company needs to incorporate your software into their systems and is offering to pay you $511,000 today, plus $511,000 at the end of each of the given six years for permission to do this. If the appropriate interest rate is 7 percent, what is the present value of the cash flow stream that the company is offering you?