What Is the Present Value of the Following Cash Flow

question 139

Multiple Choice

What is the present value of the following cash flow stream at a rate of 8.0%? ​

• A)$7,917
• B)$8,333
• C)$8,772
• D)$9,233
• E)$9,695

---

Definitions:

Buying Power

The ability of individuals or entities to purchase goods and services, often influenced by income levels, inflation rates, and economic conditions.

Lochner V. New York

A landmark U.S. Supreme Court case from 1905 that struck down a New York law limiting the working hours of bakers, setting a precedent for the limitation of state interference in private contracts.

Right To Contract

A legal principle affirming individuals' ability to freely enter into binding agreements without government interference.

Bully Pulpit

The bully pulpit refers to a powerful platform, particularly that of the U.S. presidency, used to promote an agenda and influence public opinion and policy.