Suppose you receive $3,000 a year in years one through four, $4,000 a year in years five through nine, and $2,000 in year 10, with all the money to be received at the end of the year.If your discount rate is 12%, what is the present value of these cash flows?
A)18,926.12
B)19,560.80
C)20,651.24
D)24,175.00

Question

Quizplus · Accepted Answer

The present value of each cash flow is calculated using the formula PV = CF / (1 + r)^n, where CF is the cash flow, r is the discount rate, and n is the year. Summing the present values of all cash flows gives approximately $18,926.12.

Suppose You Receive $3,000 a Year in Years One Through