Find the Present Value of an Income Stream Which Has

question 20

Multiple Choice

Find the present value of an income stream which has a negative flow of $100 per year for 3 years, a positive flow o $200 in the 4th year, and a positive flow of $300 per year in Years 5 through 8.The appropriate discount rate is 4 percent for each of the first 3 years and 5 percent for each of the later years.Thus, a cash flow accruing in Year 8 should be discounted at 5 percent for some years and 4 percent in other years.All payments occur at year-end.

• A)$528.21
• B)$1,329.00
• C)$792.49
• D)$1,046.41
• E)$875.18

---

Definitions:

Sterile Technique

A set of specific practices performed to maintain sterility during medical procedures to prevent infection.

Muscular Dystrophy

A group of genetic disorders characterized by progressive weakness and degeneration of the skeletal muscles that control movement.

Impaired Spontaneous Ventilation

A condition where the natural ability to breathe independently and maintain adequate gas exchange is diminished or compromised.

Morphine Sulfate

An opioid medication used for the relief of moderate to severe pain by acting directly on the central nervous system.