Given the Following Cash Flows, What Is the Present Value

question 148

Multiple Choice

Given the following cash flows, what is the present value if the discount rate is 8%?

• A) $1,115.07
• B) $1,947.23
• C) $2,165.70
• D) $2,358.96
• E) $2,922.62

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Definitions:

Deductive

A logical process in which a conclusion follows necessarily from the stated premises; inference by reasoning from general to specific.

Inductive

A method of reasoning in which general conclusions are drawn from specific instances or observations.

Sound Argument

An argument that is both valid (correctly structured) and has all true premises, leading to a true conclusion.

Deductive Argument

An argument that claims its conclusion necessarily follows from the premises.