What Is the Present Value of the Following Payment Stream,discounted

question 3

Multiple Choice

What is the present value of the following payment stream,discounted at 8% annually: $1,000 at the end of year 1,$2,000 at the end of year 2,and $3,000 at the end of year 3?

• A) $5,022.10
• B) $5,144.03
• C) $5,423.87
• D) $5,520.00

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Definitions:

Measure

A method or tool used to quantify or assess a variable or phenomenon.

Understand

The ability to grasp the meaning, significance, or nature of something.

Friendship Repair Rituals

Behaviors or practices individuals engage in to mend and restore relationships after a conflict or misunderstanding.

Reproach

Expression of disapproval or disappointment.