(Summer 2 2014 - Q4)\ The present value

(t

)

=

(

0)

of the following cash flow stream is

$1,262.23

when discounted at 12 percent annually. What is the value of the missing cash flows (x)? Assume the pattern of payments will continue in perpetuity (Every third year there is no payment).

The present value (t=0) of the following cash flow stream is $1,262.23 when discounted at 12 percent annually. What is the value of the missing cash flows (x)? Assume the pattern of payments will continue in perpetuity (Every third year there is no payment)