Question
24. John Keene recently invested $2250 in a project that is promising to return 10% per year. The cash flows are expected to be as
24. John Keene recently invested $2250 in a project that is promising to return 10% per year. The cash flows are expected to be as follows:
| Year | End of year cash flow |
| 1 | $552 |
| 2 | $513 |
| 3 | $550 |
| 4 | ??? |
| 5 | $538 |
Note that cash flow in year 4 is missing. Determine the year 4 missing cash flow that will make the present vvalue of this series equal to the amount John invested (that is CFO = -2250)?
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Financial Management Principles And Practice
Authors: Timothy Gallagher
7th Edition
0996095462, 978-0996095464
