Compute the Present Value of the Following Cash Flow Discounted

question 81

Multiple Choice

Compute the present value of the following cash flow discounted at 6% $$\begin{array} { | l | l | } \hline \text { End of Year } & \text { Cash flow } \\\hline 1 & \$ 450 \\\hline 2 & \$ 400 \\\hline 3 & \$ 300 \\\hline\end{array}$$

• A) $1,032.41
• B) $973.97
• C) $974.58
• D) $1,024.65

---

Definitions:

Actual Notice

Knowledge actually possessed by a person, as opposed to knowledge assumed or implied by law.

Tortious Act

A wrongful act that results in injury or harm, making the person who commits the act liable to legal action.

Principal Authorization

The granting of authority by a principal to an agent to perform acts or make decisions on the principal's behalf, often within a specific scope.

Undisclosed Principal

A situation in which an agent acts on behalf of a principal, but the identity of the principal is not revealed to the third party at the time of the transaction.