Question
16. Consider the following cash flows: Time Period Cash Flow 1 $100 2 $100 3 $300 4 ??CF?? 5 $300 Total Present Value (at a
16. Consider the following cash flows:
| Time Period | Cash Flow |
| 1 | $100 |
| 2 | $100 |
| 3 | $300 |
| 4 | ??CF?? |
| 5 | $300 |
| Total Present Value (at a 10 % discount rate) | $995.03 |
Note that the present value of all five cash flows (including the unknown cash flow at year 4) is $995.03. What is the value of the unknown cash flow at period 4?
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
2nd Edition
0273651080, 978-0273651086
