What is the value in year 3 of a $250 cash flow made in year 15 when interest rates are 12 percent?
A) $45.67
B) $64.17
C) $177.95
D) $220.00

Name: What is the value in year 3 of a $250 cash flow made in year 15 when interest rates are 12 percent? A) $45.67 B) $64.17 C) $177.95 D) $220.00
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Question

Quizplus · Accepted Answer

The present value of the $250 cash flow in year 15 is calculated using the formula: PV = FV / (1 + r)^n. Here, FV = $250, r = 0.12, and n = 12 (15 - 3). PV = 250 / (1.12)^12 = $64.17.

What Is the Value in Year 3 of a $250