You are offered an investment opportunity that costs you $28,000,has a net present value (NPV)of $2278,lasts for three years,has interest rate of 10%,and produces the following cash flows:
The missing cash flow from year 2 is closest to:

Question

You are offered an investment opportunity that costs you $28,000,has a net present value (NPV)of $2278,lasts for three years,has interest rate of 10%,and produces the following cash flows: 
The missing cash flow from year 2 is closest to:

Quizplus · Accepted Answer

B) NPV = PV benefits - PV of costs
2278 = 10000 / (1.10)¹ + X / (1.10)² + 15000 / (1.10)³ - 28000
30278 = 10000 / (1.10)¹ + X / (1.10)² + 15000 / (1.10)³
30278 = 9091 + X / (1.10)² + 11270
9917 = X / (1.10)²
X = 11,999.57

You Are Offered an Investment Opportunity That Costs You $28,000,has