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Input area: PV of cash flows $ 9,300 Year Cash flow 1 $ 1,800 2 $ 4,075 3 $ 2,900 4 $ 3,100 Discount rate
Input area: | |||||||||||||||||
PV of cash flows | $ 9,300 | ||||||||||||||||
Year | Cash flow | ||||||||||||||||
1 | $ 1,800 | ||||||||||||||||
2 | $ 4,075 | ||||||||||||||||
3 | $ 2,900 | ||||||||||||||||
4 | $ 3,100 | ||||||||||||||||
Discount rate | 10% | ||||||||||||||||
Output area: | |||||||||||||||||
Year | PV | ||||||||||||||||
1 | $ | ||||||||||||||||
2 | $ | ||||||||||||||||
3 | $ | ||||||||||||||||
4 | $ | ||||||||||||||||
Total | $ | ||||||||||||||||
PV of missing CF | |||||||||||||||||
Value of missing CF | |||||||||||||||||
The previous financial manager had been evaluating the cash flows of a proposed project. The present value of the following cash stream is $9,300 when discounted at 10%. | |||||||||||||||||
Year 1 - Cash Flow $1,800 | |||||||||||||||||
Year 2 - Cash Flow _______? | |||||||||||||||||
Year 3 - Cash Flow 2,900 | |||||||||||||||||
Year 4 - Cash Flow 3,100 | |||||||||||||||||
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