Assume That Your Required Rate of Return Is 12 Percent

question 86

Multiple Choice

Assume that your required rate of return is 12 percent and you are given the following stream of cash flows: $$\begin{array} { l c } \underline{ \text {Year } } & \underline{\text { Cash Flow} } \\1 & \$ 10,000 \\2 & 15,000 \\3 & 15,000 \\4 & 15,000 \\5 & 15,000 \\5 & 20,000\end{array}$$ If payments are made at the end of each period, what is the present value of the cash flow stream?

• A)$66,909
• B)$57,323
• C)$61,815
• D)$52,345
• E)$62,029

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Definitions:

Retina

A thin layer of tissue at the back of the eye that contains cells sensitive to light, which trigger nerve impulses that pass via the optic nerve to the brain.

Upside-Down Image

Refers to the way images are projected onto the retina in the eye, which the brain then interprets and flips to the correct orientation.

Retina

The light-sensitive layer of tissue at the back of the inner eye that converts light images into nerve signals sent to the brain.

Optic Disks

The point in the eye where the optic nerve connects to the retina, lacking photoreceptors, and creating a blind spot.