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You are given the cash flows listed below at Years 3, 5, and 6, but you arent sure about the cash flow at Year 4.
You are given the cash flows listed below at Years 3, 5, and 6, but you arent sure about the cash flow at Year 4. Assume that the appropriate interest rate for these cash flows is 12% and that the value of all the cash flows in Years 3-6, evaluated as of Year 10 is $1,834.43. Determine the value of the cash flow at Year 4.
Year | Cash Flow |
3 | 100 |
4 | ? |
5 | 200 |
6 | 425 |
A) 300
B) 350
C) 325
D) 375
E) 275
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