You are told you will receive a cash flow stream that gives you $2,150 at time...

 

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You are told you will receive a cash flow stream that gives you $2,150 at time 1, $2,750 at time 3, $3,350 at time 4, and an annuity cash flow of $80 for the subsequent 8 periods. The present value (at time 0) of this cash flow stream is $8,550. The discount rate is 9.3 percent annually. What is the value of the missing cash flow at time 2? Show all your steps. You are told you will receive a cash flow stream that gives you $2,150 at time 1, $2,750 at time 3, $3,350 at time 4, and an annuity cash flow of $80 for the subsequent 8 periods. The present value (at time 0) of this cash flow stream is $8,550. The discount rate is 9.3 percent annually. What is the value of the missing cash flow at time 2? Show all your steps.

Answer rating: 100% (QA)

The present value of an annuity is given by PV C 1 1rnr where C is the con... View the full answer