The table below shows a mixed cash flow stream, except that the cash flow for year 3

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The table below shows a mixed cash flow stream, except that the cash flow for year 3 is missing.
Year 1 ....... $10,000
Year 2 ....... 5,000
Year 3 .......
Year 4 ....... 20,000
Year 5 ....... 3,000
Suppose that somehow you know that the present value of the entire stream is $32,911.03, and the discount rate is 4%. What is the amount of the missing cash flow in year 3?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Principles Of Managerial Finance

ISBN: 978-0136119463

13th Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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