Answered: The present value of the following cash…

The present value of the following cash flow stream is $6500 when discounted at 10% annually. What is the value of the missing cash flow? year Cash Flow 1 1000 2 ? 3 2000 4 2000 Thank you susan

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1MC

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

100%

The present value of the following cash flow stream is $6500 when discounted at 10% annually. What is the value of the missing cash flow?

year Cash Flow

1 1000

2 ?

3 2000

4 2000

Thank you susan

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