The Cash Flow in Dollars Received in Year 3 Is

question 23

Multiple Choice

The cash flow in dollars received in year 3 is expected to be $12,372. The firm uses a real discount rate of 4% and the inflation rate is expected to be 2.5%. What is the present value of the year 3 cash flow?

• A) $10,213.35
• B) $12,372.00
• C) $9,777.77
• D) $9,105.23
• E) $13,285.83

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Definitions:

Earnings

Earnings refer to the income obtained from employment or investment, often measured for individuals, businesses, or investments over a specific period of time.

Paid Workforce

Individuals who are employed and receive compensation for their labor or services.

Obstacles to Satisfaction

Various barriers or challenges that prevent individuals from achieving fulfillment or happiness in different aspects of their lives.

Kinds of Work

Different categories or types of employment, ranging from physical labor to intellectual and service occupations.