Asked Feb 3, 2020

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


Expert Answer

1 Rating
Step 1

The calculation of the missing cash flow is as follows:


Finance homework question answer, step 1, image 1


Hence, the cash flow of the 2nd year is $3,294.


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