Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The present value (at t=0 ) of the following cash flow stream is $6000 when discounted at 11% annually. That stream consists of payments made

image text in transcribed
The present value (at t=0 ) of the following cash flow stream is $6000 when discounted at 11% 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 t=1,$2,000 at t=3, and $2,000 at t=4. What is the value of the missing cash flow? 2857.55 60003026.30 3587.45

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

Step: 3

blur-text-image

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

Risk Sharing Finance

Authors: Bakkali Mirakhor, Saad Abbas

1st Edition

3110590468, 978-3110590463

More Books

Students also viewed these Finance questions

Question

Write the Babylonian numeral as a Hindu-/

Answered: 1 week ago

Question

Explain the causes of indiscipline.

Answered: 1 week ago

Question

suggest a range of work sample exercises and design them

Answered: 1 week ago