You Are Considering a Project with the Following Cash Flows $\begin{array}{|l|l|l|}\hline \text { Year 1 } & {Year2} & \text { Year } 3 \\& & \\\hline £ 1,200 & £ 1,800 & £ 2,900 \\\hline\end{array}$

question 76

Multiple Choice

You are considering a project with the following cash flows: $\begin{array}{|l|l|l|}\hline \text { Year 1 } & {Year2} & \text { Year } 3 \\& & \\\hline £ 1,200 & £ 1,800 & £ 2,900 \\\hline\end{array}$ What is the present value of these cash flows,given a 9% discount rate?

• A)£4,713.62
• B)£4,855.27
• C)£5,103.18
• D)£5,292.25
• E)£6,853.61

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Definitions:

Trial Balance

An accounting report that lists the balances of all ledgers accounts in order to ensure that total debits equal total credits.

Financial Transaction

A financial transaction refers to an agreement, or communication between a buyer and seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.

Unearned Revenue

Income received by an entity for services yet to be rendered or goods yet to be delivered; also known as deferred revenue.

Liability

Any type of financial debt or obligation that a company or individual owes to another party.