Assume That Your Required Rate of Return Is 12% and You

question 28

Multiple Choice

Assume that your required rate of return is 12% and you are given the following stream of cash flows: $$\begin{array} { | c | c | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & \$ 10,000 \\\hline 1 & \$ 15,000 \\\hline 2 & \$ 15,000 \\\hline 3 & \$ 15,000 \\\hline 4 & \$ 15,000 \\\hline 5 & \$ 20,000 \\\hline\end{array}$$ If payments are made at the end of each period, what is the present value of the cash flow stream? (Round to the nearest whole dollar)

• A)$66,909
• B)$57,323
• C)$61,815
• D)$52,345
• E)$62,029

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