You are given some cash flows for Years 4-9, but are trying to find the missing...

 

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You are given some cash flows for Years 4-9, but are trying to find the missing value for Year 6. You know that the effective annual required rate of return for these cash flows is 12 percent, but that interest is compounded on a semi-annual basis. You also know that the value of all six cash flows, evaluated at Year 20, is $1,472,063.85. Given this information, determine the value of the missing cash flow at Year 6. Year 4 5 6 7 8 9 Cash Flow $75,250.00 $27,160.00 ??? $17,500.00 $92,400.00 $51,350.00 You are given some cash flows for Years 4-9, but are trying to find the missing value for Year 6. You know that the effective annual required rate of return for these cash flows is 12 percent, but that interest is compounded on a semi-annual basis. You also know that the value of all six cash flows, evaluated at Year 20, is $1,472,063.85. Given this information, determine the value of the missing cash flow at Year 6. Year 4 5 6 7 8 9 Cash Flow $75,250.00 $27,160.00 ??? $17,500.00 $92,400.00 $51,350.00

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ANSWER To solve for the missing cash flow in Year 6 we can use the formula for present value of a si... View the full answer