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:

Arbitrator

A neutral third party selected to resolve a dispute between two or more parties in a binding manner outside of court.

Labour Disputes

Conflicts between employers and employees, typically over matters such as wages, working conditions, and union representation.

Mediator

A third party in an employment dispute who meets with one party and then the other to suggest compromise solutions or to recommend concessions from each side that will lead to an agreement.

Collective Agreements

Legal contracts between employers and a group of employees, often represented by a union, that outline the terms of employment.