What is the present value of the following uneven stream of cash flows? Assume a 6% discount rate and end-of-period payments.Round to the nearest whole dollar.
A) PV = $3,000/[1.06]1 + $4,000/[1.06]2 + $5,000/[1.06]3
B) PV = $3,000[1.06]1 + $4,000[1.06]2 + $5,000[1.06]3
C) PV = $3,000/[1.06]0 + $4,000/[1.06]1 + $5,000/[1.06]2
D) PV = $3,000[1.06]-0 + $4,000[1.06]-1 + $5,000[1.06]-2
Correct Answer:
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