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An Investment Promises the Following Cash Flow Stream: $750 at Time

Question 70

Multiple Choice

An investment promises the following cash flow stream: $750 at Time 0; $2,450 at the end of Year 1 (or at t = 1) ; $3,175 at the end of Year 2; and $4,400 at the end of Year 3.At a discount rate of 8.0%,what is the present value of the cash flow stream?


A) $7,916.51
B) $8,333.17
C) $8,771.76
D) $9,233.43

Correct Answer:

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