What will be the approximate expected cash flow

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Reference no: EM13266379

Mode Publishing is considering a new printing facility that will involve a large initial investment and then result in a series of positive cash flows for six years. The estimated cash flows are as follows:

Initial Investment $1750 million
Cash Flow in Year 1 $250 million
Cash Flow in Year 2 $275 million
Cash Flow in Year 3 $300 million
Cash Flow in Year 4 $325 million
Cash Flow in Year 5 ?
Cash Flow in Year 6 $350 million

What will be the approximate expected cash flow in year 5, if the project has an Internal Rate of Return of 6%?

Reference no: EM13266379

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