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Suppose an investor is offered the following stream of cash flows: 7,500 per year for six years beginning exactly one year from today and an
Suppose an investor is offered the following stream of cash flows: 7,500 per year for six years beginning exactly one year from today and an unknown amount to be received exactly seven years from today. If the investor is willing to pay no more than $40,100, then the cash flow in year 7 is $ Assume a discount rate of 5.00 % 1) 2,256.98 2) 2,859.66 3) 4,500.00 4 ) 4,129.87 5) 3,573.86
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