Question: XYZ is considering a new project that will involve a large initial investment and then result in a series of positive cash flows for six

XYZ is considering a new project that will involve a large initial investment and then result in a series of positive cash flows for six years. The estimated cash flows are as follows: Initial Investment $1750 million Cash Flow in Year 1 $250 million Cash Flow in Year 2 $275 million Cash Flow in Year 3 $300 million Cash Flow in Year 4 ? Cash Flow in Year 5 $325 million Cash Flow in Year 6 $350 million What will be the approximate expected cash flow in year 4, if the project has a net present value of $100 million at 7% discount rate?

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