Trigen Corp. management will invest cash flows of $683,314, $220,713, $686,864, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 5.18 percent, what is the future value of these investment cash flows six years from today?

To arrive at this number; one must first calculate the PV for each cash flow using a discount factor equal to 1 / (1 + r)^t where \’r\’ is equal to 5.18% and \’t\’ represents time in years; thereafter all these values should then be added together in order to obtain the total future value. By utilizing such methods when assessing potential investments, financial managers will have a much better understanding regarding how certain projects could impact their organizations’ bottom line thus enabling them make more informed decisions going forward.