The present value of the following cash flow stream is $7,500 when discounted at 9 percent annually.

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The present value of the following cash flow stream is $7,500 when discounted at 9 percent annually. What is the value of the missing cash flow?

Year .................. Cash Flow
1 ........................... $1,700
2 .................................... ?
3 ............................ 2,450
4 ............................ 2,980

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Fundamentals of Corporate Finance

ISBN: 978-1260153590

12th edition

Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan

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Question Posted: Jul 17, 2019 09:36 AM

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The present value of the following cash flow stream is $7,500 when discounted at 9 percent annually.

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The time line is We are given the total PV of all four cash flows If w...View the full answer

Fundamentals of Corporate Finance

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