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Daigo Dojima recently invested $12,300 in a project that is promising to return 8.47 percent per year. The cash flows are expected to be
Daigo Dojima recently invested $12,300 in a project that is promising to return 8.47 percent per year. The cash flows are expected to be as follows: End of Year Cash Flow 1 2 3 1345 $3,250 1,600 1,950 ??? 850 2,180 6 Note that the 4th year cash flow is unknown. Assuming the present value of this cash flow stream is $12,300 (that is, CF0 = -12300), what is the missing cash flow value (that is, what is the cash flow at the end of the 4th year)?
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