An investor is told that the following cash flow profile has a present value of $12,000 assuming that the money received at each time period is placed into an account where it earns 17% annually. For what value of X will this be true? Year Cash Flow 1 Click here to access the TVM Factor Table calculator. 2 3 5 6 7 $1,600 $1,700 X X $2,600 $1,700 $600
An investor is told that the following cash flow profile has a present value of $12,000 assuming that the money received at each time period is placed into an account where it earns 17% annually. For what value of X will this be true? Year Cash Flow 1 Click here to access the TVM Factor Table calculator. 2 3 5 6 7 $1,600 $1,700 X X $2,600 $1,700 $600
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![An investor is told that the following cash flow profile has a present value of $12,000 assuming that the money received at each time
period is placed into an account where it earns 17% annually. For what value of X will this be true?
Year
Cash Flow
1
Click here to access the TVM Factor Table calculator.
LA
$
7308
2
3
5
6
7
$1,600
$1,700
X
X
$2,600
$1,700
$600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc262d289-2c02-42d8-a51f-df3a8d8e53ed%2F469ac64e-c142-4726-a595-d58cc0133d7c%2F8t584cl_processed.png&w=3840&q=75)
Transcribed Image Text:An investor is told that the following cash flow profile has a present value of $12,000 assuming that the money received at each time
period is placed into an account where it earns 17% annually. For what value of X will this be true?
Year
Cash Flow
1
Click here to access the TVM Factor Table calculator.
LA
$
7308
2
3
5
6
7
$1,600
$1,700
X
X
$2,600
$1,700
$600
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