Compute the Present Value of the Following Cash Flow Discounted

question 28

Multiple Choice

Compute the present value of the following cash flow discounted at 8%. $$\begin{array} { | l | l | } \hline \text { End of Year } & \text { Cash flow } \\\hline 1 & \$ 850 \\\hline 2 & \$ 500 \\\hline 3 & \$ 200 \\\hline\end{array}$$

• A) $1,374.47
• B) $973.97
• C) $1,174.58
• D) $1,024.65

---

Definitions:

Charitable Donation

Giving resources, typically money or goods, to support non-profit organizations or causes without expecting anything in return.

Organizational Crisis

A situation that threatens an organization and its stakeholders—for example, shareholders, customers, employees, and the public—and can seriously impact performance and generate negative outcomes.

Management Failures

Situations where leadership and organizational strategies fail to achieve objectives, leading to negative consequences for the company.

Poor Product Designs

Refers to products that are inefficient, unappealing, or unsafe due to inadequate design, often leading to consumer dissatisfaction or failure in the market.