An investment opportunity will cost $50,000 today. The investment promises the following yearly cash flows plus...

   

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An investment opportunity will cost $50,000 today. The investment promises the following yearly cash flows plus an unknown balloon payment at the end of the fourth year. You would like a 15% APR return on this investment. How much does the balloon payment need to be to achieve this return? YEAR Cashflow 0 1 -$50,000 2 $12,000 $12,000 3 4 $14,000 $14,000 An investment opportunity will cost $50,000 today. The investment promises the following yearly cash flows plus an unknown balloon payment at the end of the fourth year. You would like a 15% APR return on this investment. How much does the balloon payment need to be to achieve this return? YEAR Cashflow 0 1 -$50,000 2 $12,000 $12,000 3 4 $14,000 $14,000