# 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 Flow1                      10002                      ?3                       20004                       2000 Thank you susan

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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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Step 1

The calculation of the missing cash flow is as follows:

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

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