You Are Considering a Project with Cash Flows of $16,500

question 17

Multiple Choice

You are considering a project with cash flows of $16,500, $25,700, and $18,000 at the end of each year for the next three years, respectively. What is the present value of these cash flows, given a discount rate of 7.9 percent? 

• A) $54,877.02 
• B) $51,695.15 
• C) $55,429.08 
• D) $46,388.78 
• E) $53,566.67 

---

Definitions:

Collections

The process of obtaining payment of invoices owed by customers.

Insurance Premium

The amount paid periodically to an insurance company in exchange for coverage.

Condensed Balance Sheet

A simplified balance sheet that consolidates some of the more detailed accounts into major categories, providing a summary overview of a company's financial position.

Statement of Cash Flows

An overview presenting the effects of changes in income and balance sheet figures on cash and cash equivalents, categorized by operating, investing, and financing activities.