Consider the following uneven cash flow stream. What cash flow Today (Year 0), instead of the current $2,000, would be needed to accumulate $20,000 at the end of Year 5? (Assume that the interest rate remains 10% and the cash flows for Years 1 through 5 remain unchanged.) Show your work

Here are the financial statements for Aquidneck SNF, a non-profit entity:

Statement of Operations and Change in Net Assets as of December 31, 2018 (in $000s)

Revenue:

Premiums Earned $26,682

Coinsurance 1,689

Interest & Other Income 242

Total Revenue $28,613

Expenses:

Salaries and benefits $15,154

Medical Supplies and drugs 7,507

Insurance 3,963

Provision for bad debts 19

Depreciation 367

Interest 385

Total Expenses $27,395

Net Income $ 1,218

Net Assets, Beginning of Year $ 900

Net Assets, End of Year $ 2,118

Balance Sheet as of December 31, 2018 ($ in 000s)

Assets:

Cash & equivalents $2,737

Net premiums receivable 821

Supplies 387

Total Current Assets $3,945

Net Property and Equipment $5,924

Total Assets $9,869

Liabilities and Net Assets

Accounts payable medical services $2,145

Accrued expenses 929

Notes payable 141

Current portion long term debt 241

Total current liabilities $3,456

Long Term Debt $4,295

Total Liabilities $7,751

Net Assets (Equity) $2,118

Total Liabilities & Net Assets $9,869

Consider the following uneven cash flow stream: (Hint: Drawing a timeline may help.)

Year Cash Flow

Year 0 (Today) $2,000

Year 1 2,000

Year 2 0

Year 3 1,500

Year 4 2,500

Year 5 4,000