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An investor is considering a business opportunity with the following predicted cash flows in each year (i.e., the cash flows are annual for five years).
An investor is considering a business opportunity with the following predicted cash flows in each year (i.e., the cash flows are annual for five years). Year 1 2 3 4 5 Predicted Cash Flow 4000 9000 X 6000 8000 The investor could earn an APR of 10% on an investment of similar risk. If the investor is willing to pay $26,000 today for this business opportunity, what is her expected cash flow at the end of Year 3 (to the nearest dollar)?
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