finance

John Keene recently invested $3,500 in a project that is promising to return 10.75 percent per year.
The cash flows are expected to be as follows:

End of Cash
Year Flow
1 $750
2 800
3 ???
4 950

Note that the 3rd year cash flow is unknown. Assuming the present value of this cash flow stream is $3,500 (that is, CF0 = -3500), what is the missing cash flow value (that is, what is the cash flow at the end of the 3rd year)?

  1. 👍 0
  2. 👎 0
  3. 👁 85
asked by Peter

Respond to this Question

First Name

Your Response

Similar Questions

  1. FINANCE

    Tim recently invested $3,500 in a project that is promising to return 10.75 percent per year. The cash flows are expected to be as follows: End of Cash Year Flow 1 $750 2 800 3 ??? 4 950 Note that the 3rd year cash flow is

    asked by Kevin on October 22, 2009
  2. Probability and Linear Math

    SET UP BUT DO NOT SOLVE THE FOLLOWING LINEAR PROGRAMMING PROBLEM. A financier plans to invest up to $500,000 in two products. Project A yields a return of 10% on an investment, whereas Project B yields a return of 15% on the

    asked by Missy on December 1, 2014
  3. math

    A financier plans to invest up to $500,000 in two projects. Project A yields a return of 8% on the investment of x dollars, whereas Project B yields a return of 13% on the investment of y dollars. Because the investment in Project

    asked by Brian on June 9, 2017
  4. math

    A financier plans to invest up to $500,000 in two projects. Project A yields a return of 8% on the investment of x dollars, whereas Project B yields a return of 13% on the investment of y dollars. Because the investment in Project

    asked by Brian on June 10, 2017
  5. finace

    Find the IRR and MIRR of a project if it has estimated cash flows of $5,500 annually for seven years if its year-zero investment is $25,000 and the firm's minimum required rate of return on the project is 10 percent.

    asked by sara on June 10, 2012
  6. finance

    Find the IRR and MIRR of a project if it has estimated cash flows of $5,500 annually for seven years if its year-zero investment is $25,000 and the firm’s minimum required rate of return on the project is 10 percent

    asked by strayer on September 8, 2012
  7. college algebra

    I'm completely drawing a blank on how to do this. A woman has $500,000 invested into two real estate properties. One yields an annual return on 12% and the other returns 15% per year on her investment. Her total annual return from

    asked by Jess on February 9, 2016
  8. lim

    I'm completely drawing a blank on how to do this. A woman has $500,000 invested into two real estate properties. One yields an annual return on 12% and the other returns 15% per year on her investment. Her total annual return from

    asked by Jess on February 9, 2016
  9. Finance

    Cash flows will be $27.7 million, all coming at the end of one year. The land must be returned to its natural state at a cost of $25 million, payable after two years. Compute the IRR for this project. Should the project be

    asked by Ruth on May 4, 2011
  10. Algebra

    A financier plans to invest up to $500,000 in two projects. Project A yields a return of 11% on the investment of x dollars, whereas Project B yields a return of 16% on the investment of y dollars. Because the investment in

    asked by Jenn on June 6, 2018

More Similar Questions