1. What is the future value of the following cash flows if the discount rate is 8%? What is the future value if the discount rate is 5%? (this is asking you take the future value of the cash flows. Please find the future value at year 4. ))
2. Which one of the following is a project cash inflow? Ignore any tax effects.
Decrease in accounts payable.
Increase in inventory.
Decrease in accounts receivable.
Depreciation expense based on MACRS.
Equipment acquisition