What Is the Present Value of the Following Cash Flow

question 157

Multiple Choice

What is the present value of the following cash flow stream at a rate of 6.25%? ​
​
​​

• A)$411.57
• B)$433.23
• C)$456.03
• D)$480.03
• E)$505.30

---

Definitions:

Income Taxes

Taxes imposed by the government on the income earned by individuals and corporations.

Working Capital

The difference between a company's current assets and current liabilities, indicating the available short-term resources to fund operations.

Income Tax Rate

The percentage of an individual or company's income that is paid to the government as tax.

After-Tax Discount Rate

The discount rate used in capital budgeting that accounts for taxes and reflects the net cost of borrowing and the opportunity cost of investing.