What Is the Present Value of the Following Net Cash

question 89

Multiple Choice

What is the present value of the following net cash flows if the discount rate is 10%? $$\begin{array} { l l } \text { Year } & \text { Net Cash Flow } \\1 - 10 & \$ 20,000 \text { each year } \\11 - 15 & \$ 15,000 \text { each year } \\16 - 20 & \$ 10,000 \text { each year }\end{array}$$

• A) $217,675
• B) $153,895
• C) $322,130
• D) $167,515

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Definitions:

Brake Fluid

A hydraulic fluid used in brake systems to transfer force into pressure.

Master Cylinder

The main component in a vehicle's brake system that converts pedal pressure into hydraulic pressure to apply the brakes.

Hygroscopic

A characteristic of brake fluid by which it absorbs moisture. Over time, this can damage the hydraulic system components.

Proportioning Valve

A valve in a vehicle's brake system that regulates the pressure between the front and rear brakes to prevent rear wheel lockup during braking.