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    value of the missing cash flow

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    The present value of the following cash flow stream is $6,785 when discounted at 10 percent annually. What is the value of the missing cash flow?

    Year Cash Flow
    1 $1,500
    2 ?
    3 $1,800
    4 $2,400

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    https://brainmass.com/business/discounted-cash-flows-model/value-missing-cash-flow-302051

    Solution Preview

    PV of Year 1 CF: 1500/1.10 = $1,363.64

    PV of Year 3 CF: 1800/1.10^3 = ...

    Solution Summary

    The value of the missing cash flow is determined.

    $2.19

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