Question 782160: Compute E so that the cash flows have a present value of 0
300 200 100 200 100 200 300
0------1---------2---------3--------4--------5--------6---------7
i = 10% E E
 .
I have been told that E= $825.62, but I can't figure out how that is the correct answer. Can you give any assistance? **Excuse is the formatting changes how the question looks** The 300,200,100,200,100,200,300 is over the 1,2,3,4,5,6,7 and the E,E is under the 5 and 6.
Answer by oscargut(2103)   (Show Source):
You can put this solution on YOUR website! If you simplify:
803.7 +((100-E)1.1+200-E)/1.1^6 =0
-2.1E+310 =-803.7(1.1^6)
-2.1E = -1733.8
E = 825.62
If you need more help with similar questions you can contact me now at:
mthman@gmail.com
Thanks
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