4% Determine the value of M that will make the 2 cash flows equivalent at 7
|Year||CF||PVF @ 4%||PV|
|1||2M||0.961538||2M * 0.961538|
|5||5M||0.821927||5M * 0.821927|
300 = 6.0327 M
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Question & Answer: 4% Determine the value of M that will make the 2 cash flows equivalent at 7…..
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=> M = 49.73
Note – It is not clear in the question in which year a cash outflow is happening in picture 2. Assuming it is in year 0 of the project the question has been solved. Otherwise, please let me know. Manyt thanks.