Future value of this cash flow pattern


Problem:

You have been offered the opportunity to invest in a project that will pay $2,726 per year at the end of years one through three and $5,219 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 9.49 percent per year.

Required:

Question: What is the future value of this cash flow pattern at the end of year five?

Note: Please describe comprehensively and provide step by step solution.

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Finance Basics: Future value of this cash flow pattern
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