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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%? ​
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:

Projected Benefit Obligation

An actuarial calculation of the present value of pension benefits owed to employees, measured by the projected salary levels.

Interest Cost

The expense associated with borrowing funds, calculated as the rate of interest times the principal amount of the debt.

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