What cash flow do we need after four years so that the net p

What cash flow do we need after four years so that the net present value of it is $12,500 at a discount rate of 9%? O $11,468 O $162,901 O $17,645 O $13,080

Solution

Answer = $17,645

FV = CF x (1+r)^n
CF = 12500
r = 9%
n = 4
FV = 12500(1+0.09)^4
17644.77
 What cash flow do we need after four years so that the net present value of it is $12,500 at a discount rate of 9%? O $11,468 O $162,901 O $17,645 O $13,080 So

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