Suzanne Has Identified a Project with the Following Cash Flows

question 50

Multiple Choice

Suzanne has identified a project with the following cash flows. What is the present value of the cash flows at time 0 if the interest rate is 9%? $$\begin{array} { | c | c | } \hline \text { Year } & \text { Cash Flow } \\\hline 1 & \$ 2,000 \\\hline 2 & \$ 650 \\\hline 3 & \$ 375 \\\hline 4 & \$ 1,200 \\\hline\end{array}$$

• A)$3,521.63
• B)$3,230.86
• C)$3,838.58
• D)$4,225.00
• E)$3,488.90

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Definitions:

Antagonist

A drug that blocks the actions of a receptor or its intended ligand.

Receptor Site

Specific regions on a cell surface or within a cell where chemicals, such as hormones or neurotransmitters, can bind to elicit a physiological response.

Pharmacodynamic

pertains to the study of the biochemical and physiological effects of drugs and their mechanisms of action.

Analgesic

A class of drugs designed to relieve pain without causing loss of consciousness.