What Is the Net Present Value of the Following Cash

question 33

Multiple Choice

What is the net present value of the following cash flows if the relevant discount rate is 5.75 percent? $$\begin{array} { | c | r | } \hline \text { Year } & \text { Cash Flow } \\\hline 0 & \$ 11,400 \\\hline 1 & - 2,500 \\\hline 2 & - 2,500 \\\hline 3 & - 9,500 \\\hline\end{array}$$

• A)-$1,482.15
• B)-$1,232.68
• C)$507.19
• D)$1,211.40
• E)$1,402.02

Understand the default subsequent measurement bases for financial liabilities.

Differentiate between amortised cost and fair value measurement bases.

Understand how an individual's life cycle affects their investment decisions and asset allocation.

Comprehend the steps involved in the process of asset allocation.

---

Definitions:

Flexibility

The ability of joints to move through their full range of motion.

Sacrum

A large, triangular bone at the base of the spine and at the upper and back part of the pelvic cavity, where it is inserted like a wedge between the two hip bones.

Vertebrae

The individual bones that make up the vertebral column (backbone) in vertebrates.

Intervertebral Disk

A fibrocartilaginous structure located between the vertebrae of the spine, acting as a shock absorber and allowing for flexibility.