For context:

A building that is worth $500000 and has a cost of capital of 10% is expected to produce cash flows of $200000 in 1 year and X in 3 years. What is X? 423500

Question?

How did my professor get 1.100? He explained that part as "$500,000 equals $200,000 in one year, plus x times 3".

A building that is worth 500,000 A has a cost of capital of 10.07 is expected to produce cash flow of : 200.000 in Tyr & x in 3 yrs, what is X? 200,000 X 200.000 PV-500,000 500100G + 2 1.100 161003 500,000 = 181,818 1.1003 500,000 > 181,818 = 318,182 = 1.103 & 318,182 X 11003 = 423,500