Assume That You Will Receive $2,000 a Year in Years

question 81

Multiple Choice

Assume that you will receive $2,000 a year in Years 1 through 5,$3,000 a year in Years 6 through 8,and $4,000 in Year 9,with all cash flows to be received at the end of the year.If you require a 14 percent rate of return,what is the present value of these cash flows?

• A) $9,851
• B) $13,250
• C) $11,714
• D) $15,129
• E) $17,353

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Definitions:

Post-traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of thought patterns in influencing behavior and emotions.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think, and how you act, characterized by persistent sadness and a lack of interest or pleasure in previously rewarding or enjoyable activities.

Critical Incident Stress Debriefing (CISD)

A structured process for helping individuals who have experienced a traumatic event to discuss their experiences and feelings, aimed at reducing the risk of post-traumatic stress disorder.