What Is the Most You Should Pay to Receive the Following

question 94

Multiple Choice

What is the most you should pay to receive the following cash flows if your required rate of return is 12 percent? $\begin{array}{ll}\text { Year 1 } & \$ 5,000 \\\text { Year 2 } & \$ 8,000 \\\text { Year 3 } & \$ 12,000 \\\text { Years 4-10 } & \$ 15,000\end{array}$

• A) $58,580
• B) $104,135
• C) $68,105
• D) $40,000

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Definitions:

Adipose Tissue

The biological term for body fat, a connective tissue that stores energy and protects organs.

Visceral Fat

A type of body fat that's stored within the abdominal cavity and is associated with increased risks of metabolic diseases, such as diabetes and heart disease.

Chronic Diseases

Long-term medical conditions that are generally progressive and may require ongoing management, such as diabetes or heart disease.

Excess Fat

Body fat that exceeds the normal, healthy range and can increase the risk of health problems like heart disease, diabetes, and certain cancers.