Assume That You Will Receive $2,000 a Year in Years

question 22

Multiple Choice

Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Y all cash flows to be received at the end of the year.If you require a 14 percent rate of return, what is the present val cash flows?

• A)$9,851
• B)$13,250
• C)$11,714
• D)$15,129
• E)$17,353

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Definitions:

Negotiable

Term referring to legal instruments or documents that can be transferred from one party to another, effectively transferring rights and obligations.

Rubber-Stamped Signature

A rubber-stamped signature is a reproduced authorization or endorsement using a rubber stamp, often used for routine or mass approvals.

Condition

A specific requirement or stipulation that defines or restrains an event or action in a legal context.

Drafts

Written orders for the payment of a specified sum of money from one party to another, often used in international trade.