What Is the Present Value of the Following Mixed Cash

question 16

Multiple Choice

What is the present value of the following mixed cash flow stream if interest is 6% (rounded) ?
$$\begin{array} { | l | l | } \hline Y A A R & \text { QASH FLOW } \\\hline 1 & \$ 5,000 \\\hline 2 & 40,000 \\\hline 3 & \$ 9,500 \\\hline\end{array}$$

• A)$25,370
• B)$19,813
• C)$21,225
• D)$18,750

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Definitions:

Rotary Engines

An internal combustion engine where the combustion chamber rotates around a fixed crankshaft, known for a compact and lightweight design.

Lobe

A projection or segment of an object, typically referring to the part of a camshaft that engages with a valve lifter in an internal combustion engine to open and close valves.

Rotor

A component of disc brake systems, a flat, circular plate that the brake pads clamp onto to slow or stop the vehicle.

Reciprocating Pistons

Components in an engine that move up and down within cylinders to convert fuel into mechanical energy.