The companye decided the most expedient way to demonstrate how interest rates as well as time impact the value of money was to use examples. You have been asked to prepare a report analyzing your findings of the three example calculations listed below.
Calculate the future value of $100,000 ten years from now based on the following annual interest rates:
2%
5%
8%
10%
Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows:
Year 1 = $100,000
Year 2 = $150,000
Year 3 = $200,000
Year 4 = $200,000
Year 5 = $150,000
Years 6-10 = $100,000
Calculate the present value of the cash flow stream in problem 2 with the following interest rates:
Year 1 = 8%
Year 2 = 6%
Year 3 = 10%
Year 4 = 4%
Year 5 = 6%
Years 6-10 = 4
Perform your calculations in an Excel spreadsheet. Copy the calculations in a Word document. In addition, write a 2 page executive summary in Word format. Your summary should reflect a proper analysis of your findings, including a comparison and contrast of data.