Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The present value (at n=0) of the following cash flow stream is $5,979.04 when discounted at 12% annually. That stream consists of payments made at

The present value (at n=0) of the following cash flow stream is $5,979.04 when discounted at 12% annually. That stream consists of payments made at the end of each of four periods. One of the payments, the second one, is missing. The others are $1,000 at n=1, $2,000 at n=3, and $2,000 at n=4. What is the value of the missing cash flow?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Islamic FinanceA Practical Perspective

Authors: Nafis Alam, Lokesh Gupta, Bala Shanmugam

1st Edition

3319665588, 9783319665580

More Books

Students also viewed these Finance questions

Question

Discuss the six focus organizations used in this book.

Answered: 1 week ago

Question

=+Is this metric really applicable to what I want to accomplish?

Answered: 1 week ago

Question

=+How does this metric connect to my objectives?

Answered: 1 week ago