(Q. 8 IN B) THE FOLLOWING CASH FLOWS HAVE A PRESENT VALUE OF $1,922...

3. (Q. 8 in B) The following cash flows have a present value of $1,922.51: $300 today, $400 at the end of year one, X at the end of year two, and $900 at the end of year three. The annual interest rate is 6%. What is X? A) $419 B) $450 C) $489 D) $550 Solution D Bring all cash flows to t=0: