An investor is told that the following cash flow profile has a present value of $11,000 assuming that the money received at each time period is placed into an account where it earns 18% annually. For what value of X will this be true? Year Cash Flow

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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An investor is told that the following cash flow profile has a present value of $11,000 assuming that the money received at each time
period is placed into an account where it earns 18% annually. For what value of X will this be true?
Year Cash Flow
Click here to access the TVM Factor Table calculator.
$
1
2
3
4
5
6
7
$1,300
$1,600
X
X
$3,000
$1,600
$400
Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±5.
Transcribed Image Text:An investor is told that the following cash flow profile has a present value of $11,000 assuming that the money received at each time period is placed into an account where it earns 18% annually. For what value of X will this be true? Year Cash Flow Click here to access the TVM Factor Table calculator. $ 1 2 3 4 5 6 7 $1,300 $1,600 X X $3,000 $1,600 $400 Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±5.
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