You are offered an investment opportunity that costs you $1,000 per year for the first...
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Finance
You are offered an investment opportunity that costs you $1,000 per year for the first two years, has a net present value (NPV) of $704, lasts for three years, has an interest rate of 5%, and produces the following cash flows:
| Year | Cash flow |
| 0 | -$1,000 |
| 1 | -$1,000 |
| 2 | $1,500 |
| 3 | ? |
What is the missing cash flow in year 3?
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