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:

Double Exponential Smoothing

A forecasting technique that applies two levels of smoothing to capture trends in time series data more accurately than single exponential smoothing.

Slope Significance

The statistical importance of the slope coefficient in a linear regression model, indicating whether the independent variable has a meaningful impact on the dependent variable.

Exponential Smoothing Model

A forecasting technique that applies smoothing constants to weight past observations, giving more importance to recent data.

Regression Method

A statistical approach used to model and analyze the relationships between a dependent variable and one or more independent variables.