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Foster Industries: Value of missing cash flow in fourth year to have a 15% return

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Foster Industries has a project which has the following cash flows:

Year Cash Flow
0 -$300.00
1 100.00
2 125.43
3 90.12
4 ?

What cash flow will the project have to generate in the fourth year in order for the project to have a 15% rate of return?

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Solution Summary

The value of missing cash flow in fourth year to have a 15% return.

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First, calculate the present values of all the cash ...

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