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A Proposed Project Has Cash Flows of $2,000, $?, $1,750

Question 23

Multiple Choice

A proposed project has cash flows of $2,000, $?, $1,750, and $1,250 at the end of Years 1 to 4. The discount rate is 7.2 percent and the present value of the four cash flows is $6,669.25. What is the value of the Year 2 cash flow?


A) $2,450
B) $2,750
C) $2,500
D) $2,250 
E) $2,800 

Correct Answer:

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