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. 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

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.  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

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.  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