Calculate the Present Value of the Following Cash Flows Assuming

question 4

Multiple Choice

Calculate the present value of the following cash flows assuming they occur at the end of each year and the interest rate is 12% p.a.:
Year 0,($12 000) ;Year 1,$5670;Year 2,$11 250.

• A)$2030.93
• B)$26 030.93
• C)$28 920
• D)($1163.19)

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Definitions:

Conventional

Referring to ideas, methods, or standards that are widely accepted and practiced within a society or culture.

Preconventional

A level of moral development where individuals' decision-making is based on avoiding punishment or seeking personal gain.

Individualism

Giving priority to one’s own goals over group goals and defining one’s identity in terms of personal attributes rather than group identifications.

Service-learning Programs

Learning experiences that combine significant service to the community with educational content and reflective exercises to enhance the educational outcome, encourage social responsibility, and bolster community ties.