You Are Given the Following Cash Flow Information

question 71

Multiple Choice

You are given the following cash flow information.The appropriate discount rate is 12 percent for Years 1−5 and 10 percent for Years 6−10.Payments are received at the end of the year. What should you be willing to pay right now to receive the income stream above?

• A) $166,866
• B) $158,791
• C) $225,000
• D) $125,870
• E) $198,433

---

Definitions:

Tui Na

A form of Chinese manipulative therapy often used in conjunction with acupuncture, moxibustion, and other traditional Chinese medical practices for therapeutic effects.

Insurance Plans

Financial products designed to cover the cost of healthcare, among other risks, by pooling resources and risks.

Chiropractic

A healthcare discipline focused on the diagnosis, treatment, and prevention of mechanical disorders of the musculoskeletal system, especially the spine, under the hypothesis that these disorders affect general health via the nervous system.

Dietary Supplements

Products taken by mouth that contain dietary ingredients intended to supplement the diet, such as vitamins, minerals, herbs, or amino acids.