What is the future value of the following cash flow stream at a rate of 9%? Do not round intermediate calculations. Years: 0 1 2 3 4 CFs: $0 $1,350 $3,750 $4,500 $6,250

Answer:
Cash Flow in Year 0 = $0
Cash Flow in Year 1 = $1,350
Cash Flow in Year 2 = $3,750
Cash Flow in Year 3 = $4,500
Cash Flow in Year 4 = $6,250

Discount rate = 9%

Future Value = Present Value * (1 + r) ^ n

Future Value = $0 + $1,350 * (1 + 0.09)^ 3 + $3,750 * (1 + 0.09)^ 2 + $4,500 * (1 + 0.09)^ 1 + $6,250 * (1 + 0.09)^ 0
Future Value = $0 + $1,350 * 1.2950 + $3,750 * 1.1881 + $4,500 * 1.0900 + $6,250 * 1.0000
Future Value = $0 + $1,748.29 + $4,455.38 + $4,905.00 + $6,250.00
Future Value = $17,358.67