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You just starting a loaning firm and negotiating to make a 7-year loan of SAR 31,300 to Alkohbar Bakery which will pay you as follows:

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You just starting a loaning firm and negotiating to make a 7-year loan of SAR 31,300 to Alkohbar Bakery which will pay you as follows: SAR 2,500 at the end of Year 1. SAR 5,000 at the end of Year 2, SAR 7,500 at the end of Year 3. Plus a fixed but currently unspecified cash flow X, at the end of each year from Year 4 through Year 7 Al Khobar Bakery is essentially riskless, so you are confident the payments will be made. For such loan, you require 8% as an appropriate rate of return (compounded annually). What cash flow must the investment provide at the end of each of the final 4 years, that is what is X2 (See the timeline) 0 1 3 5 2 + 5,000 2,500 7.500 Click to select your answer + 2,500 5,000 7,500 O A. SAR 10,184.64 B. SAR 7,129.25 O C. SAR 5,092.32 OD. SAR 8,387.35 O E. SAR 3,960.69

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