Frieda Frost recently invested $3,125 in a project that is promising to return 10 percent per year. The cash flows are expected to be as follows: End of Year Cash Flow 1yr 597 2yr 527 3yr 540 4yr ???? 5yr 555 Note that the cash flow in year 4 is missing . Determine the Year 4 missing cash flow that will make the present value of this series equal to the amount Frieda invested ( that is , $ 3,125 )? Record your answer as a dollar amount rounded to 2 decimal places , but do not include a dollar sign or any commas in your answer . For example , enter $ 12,327.24987 as 12327.25 .

Frieda Frost recently invested $3,125 in a project that is promising to return 10 percent per year. The cash flows are expected to be as follows: End of Year Cash Flow 1yr 597 2yr 527 3yr 540 4yr ???? 5yr 555 Note that the cash flow in year 4 is missing . Determine the Year 4 missing cash flow that will make the present value of this series equal to the amount Frieda invested ( that is , $ 3,125 )? Record your answer as a dollar amount rounded to 2 decimal places , but do not include a dollar sign or any commas in your answer . For example , enter $ 12,327.24987 as 12327.25 .

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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