You are given some cash flows for Years 1-5, but are trying to find the missing value for Year 3. You know that the annual nominal required rate of return for these cash flows is 12 percent, but that interest is compounded on a semi-annual basis. You also know that the value of all five cash flows, evaluated at Year 1, is $78,686.34. Given this information, determine the value of the missing cash flow at Year 3. Year 1 2 3 4 5 $12,000 $16,000 $14,000 $10,000 $18,000 Cash Flow $25,000 $10,000 ??? $30,000 $20,000

You are given some cash flows for Years 1-5, but are trying to find the missing value for Year 3. You know that the annual nominal required rate of return for these cash flows is 12 percent, but that interest is compounded on a semi-annual basis. You also know that the value of all five cash flows, evaluated at Year 1, is $78,686.34. Given this information, determine the value of the missing cash flow at Year 3. Year 1 2 3 4 5 $12,000 $16,000 $14,000 $10,000 $18,000 Cash Flow $25,000 $10,000 ??? $30,000 $20,000

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter21: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 9P

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