If the present value of cash flow X is $240, and the present value of cash flow Y is $160, then the present value of the combined cash flows is:
A)$240.
B)$160.
C)$80.
D)$400.

Name: If the present value of cash flow X is $240, and the present value of cash flow Y is $160, then the present value of the combined cash flows is: A)$240. B)$160. C)$80. D)$400.
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Question

Quizplus · Accepted Answer

The present value of the combined cash flows is the sum of the present values of each cash flow, which is $240 + $160 = $400.

If the Present Value of Cash Flow X Is $240