Suzanne Has Identified a Project with the Following Cash Flows

question 86

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 17%? $$\begin{array} { | c | c | } \hline \text { Year } & \text { Cash Flow } \\\hline 1 & \$ 2,000 \\\hline 2 & \$ 650 \\\hline 3 & \$ 375 \\\hline 4 & \$ 1,200 \\\hline\end{array}$$

• A)$3,058.75
• B)$3,578.74
• C)$2,614.32
• D)$4,225.00
• E)$3,521.63

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Definitions:

Acetylcholine

A neurotransmitter in the brain and body involved in many functions including muscle activation, heartbeat regulation, and memory formation.

Epinephrine

A crucial chemical in stress response, responsible for preparing the body for quick action by boosting energy levels and alertness.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, extending from the brainstem to the lower back, serving as the primary pathway for transmitting signals between the brain and the rest of the body.