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Consider the following: Year Cash Flow 0 -$8,000 1 $400 2 $300 3 ? 4 $500 5 $500 The required rate of return is 12%.
Consider the following:
| Year | Cash Flow |
| 0 | -$8,000 |
| 1 | $400 |
| 2 | $300 |
| 3 | ? |
| 4 | $500 |
| 5 | $500 |
The required rate of return is 12%. Find the minimum amount you would have to receive as a cash flow in year 3 and still recommend the project. Answer to 2 decimals places.
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Introduction To Mathematical Finance Discrete Time Models
Authors: Stanley R. Pliska
1st Edition
1557869456, 9781557869456
