If the Interest Rate Is 10% and Cash Flows Are

question 68

Multiple Choice

If the interest rate is 10% and cash flows are $1,000 at the end of year one and $2,000 at the end of year two, then the present value of these cash flows is

• A)$2,562.
• B)$3,200.
• C)$439.
• D)$3,000.

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