Final answer:
The value in year 4 of a $4,850 cash flow made in year 11 when interest rates are 1.7% is approximately F. $4,383.45.
Step-by-step explanation:
To calculate the value of a cash flow in year 4 when interest rates are 1.7%, we need to use the present value formula. The present value formula is:
PV = CF / (1 + r)^n
Where PV is the present value, CF is the cash flow, r is the interest rate, and n is the number of periods.
In this case, the cash flow is $4,850, the interest rate is 1.7%, and the number of periods is 11 - 4 = 7 years. Plugging these values into the formula:
PV = 4850 / (1 + 0.017)^7
Using a calculator, we get:
PV ≈ $4,383.45
Therefore, the value in year 4 of a $4,850 cash flow made in year 11 when interest rates are 1.7% is approximately $4,383.45, so the correct answer is F. $4,383.45.