John Keene recently invested $2,250 in a project that is promising to return 10 percent per year. The cash flows are expected to be as follows:

End of Cash Year Flow 1 $543 2 $507 3 $557 4 ?? 5 $600

Note that the cash flow in year 4 is missing. Determine the Year 4 missing cash flow that will make the present value of this series equal to the amount John invested (that is, $2,250)?

SIMILAR QUESTION WITH ANSWER

John Keene recently invested $2,250 in a project that is promising to return 10 percent per year. The cash flows are expected to be as follows:

End of Cash Year Flow 1 $540 2 $506 3 $558 4 ?? 5 $546

Note that the cash flow in year 4 is missing. Determine the Year 4 missing cash flow that will make the present value of this series equal to the amount John invested (that is, $2,250)? (Round your answer to 2 decimal places and record your answer without a dollar sign and without commas).

	Student Response	Correct Answer
Answer:	853.06	853.06