Consider the Following Timeline

question 57

Multiple Choice

Consider the following timeline:
If the current market rate of interest is 7%,then the future value of this timeline as of year 3 is closest to:

• A)$1720
• B)$1500
• C)$1404
• D)$1717

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Outlay

The amount of money spent on a particular expense or investment.

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Cash Inflows

Money or other forms of financial assets that come into a company, contributing to its total revenue.