Consider the Following Timeline Detailing a Stream of Cash Flows

question 51

Multiple Choice

Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 8%,then the present value of this stream of cash flows is closest to:

• A)$22,871.
• B)$21,211.
• C)$24,074.
• D)$26,000.

---

Definitions:

Product Design

The process of defining the appearance, functionality, and manufacturability of a product to be offered to consumers.

Social Loafing

A phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Synergy

The increased effectiveness that results when individuals, groups, or systems work together compared to when they operate separately.

Design a New Product

The process of creating a novel item or service that fulfills a specific consumer need or addresses a particular market niche.