What is the most you should pay to receive the following cash flows if your required rate of return is 12 percent?
$\begin{array}{ll}
\text { Year } 1 & \$ 5,000 \
\text { Year } 2 & \$ 8,000 \
\text { Year } 3 & \$ 12,000 \
\text { Year 4-10 } & \$ 15,000
\end{array}$
A)$58,580
B)$104,135
C)$68,105
D)$40,000

Question

Quizplus · Accepted Answer

PV = $5,000(0.893) + $8,000(0.797) + $12,000(0.712) + $15,000(5.650 - 2.402) = $68,105

What Is the Most You Should Pay to Receive the Following