Marcia observed the following cash flow series (in $1000 units) in an accounting report at work. The actual amounts in years 1 and 4 are missing; however, the report states that the present worth in year 0 was $300,000 at an interest rate of 10% per year. Calculate the value of x.
P = 40 + x(P/F,10%,1) + 40(P/A,10%,2)(P/F,10%,1) + x(P/F,10%,4) + 40(P/A,10%,2)( P/F,10%,4)
300 = 40 + x(0.9091) + 40(1.7355)(0.9091) + x(0.6830) + 40(1.7355)(0.6830)
1.5921x = 300 – 40 - 63.110 – 47.414
x = $93.89
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