You are given the following cash flow information.The appropriate discount rate is 12 percent for Years 1-5 and 10 percent for Years 6-10.Payments are received at the end of the year. Year Amount
1-5 $20,000
6-10 $25,000
What should you be willing to pay right now to receive the income stream above?
A)$166,866
B)$158,791
C)$225,000
D)$125,870
E)$198,433

Question

Quizplus · Accepted Answer

The Answer of You are given the following cash flow information.The appropriate discount rate is 12 percent for Years 1-5 and 10 percent for Years 6-10.Payments are received at the end of the year. Year Amount
1-5 $20,000
6-10 $25,000
What should you be willing to pay right now to receive the income stream above?
A)$166,866
B)$158,791
C)$225,000
D)$125,870
E)$198,433

You Are Given the Following Cash Flow Information