Problem 25 3 points For the cash flows shown below if the in

Problem 2-5 (3 points) For the cash flows shown below, if the interest rate is 10% per year, determine the unknown value X. Cash flow $2000 1000 ear 1200

Year 1 discounted cash flow is

1000* 0.9091 =909.1

Year 3 discounted cash flow is

1200* 0.7513 = 901.6

Equation

909.1+x*0.8264+901.6 =2000

X*0.8264 = 2000-909.1-901.6

X = 189.3/0.8264

X = 229.05

Problem 2-5 (3 points) For the cash flows shown below, if the interest rate is 10% per year, determine the unknown value X. Cash flow $2000 1000 ear 1200 Solut

Problem 25 3 points For the cash flows shown below if the in

Solution

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