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A project with an initial outlay of $5073 has a required rate of return of 8.72% and NPV of $193. Given the cash flows in
A project with an initial outlay of $5073 has a required rate of return of 8.72% and NPV of $193. Given the cash flows in the table below, find the cash flow in Year 2, to the nearest dollar. Year Cash Flow 1 $1089 2 CF2 = ??? 3 $1691 4 $2038 Answer Key: 1761 Feedback: Sep up: PV of CFs - IO = NPV; PV (CF1 + CF2 + CF3 + CF4) = NPV + IO. You know all CFs except one (CF2). Solve for it as the above equation will have just one unknown
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