The Present Value of the Following Cash Flow Stream Is

question 32

Multiple Choice

The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent annually.What is the value of the missing cash flow?

• A)$1,500
• B)$1,750
• C)$2,000
• D)$2,250
• E)$2,500

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Definitions:

Short-run

A period in economics where at least one input is fixed and cannot be changed.

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A concept in economics illustrating the inverse relationship between the rate of unemployment and the rate of inflation in an economy over time.

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The condition of being without work while actively searching for employment, often expressed as a percentage of the labor force.