Figure 14-6.Present Value of $1

question 110

Multiple Choice

Figure 14-6.Present value of $1
Present value of an Annuity of $1

-Refer to Figure 14-6. Jan Rigby is considering an investment that will cost $20,000 initially, and return annual cash flows of $10,000 in each of three years. Jan requires a minimum rate of return of 8%. What is the present value of the cash inflows? (Note: there may be a rounding error depending on the table you use to compute your answer. Choose the answer closest to the one you calculate.)

• A) $25,770
• B) $20,000
• C) $5,770
• D) $45,770
• E) $10,000

---

Definitions:

Twitter Connect

A feature on Twitter that allows users to find and follow friends, celebrities, or organizations based on their interests to enhance social engagement.

LinkedIn Connect

A feature of LinkedIn that allows users to establish a professional network by sending and accepting connection requests.

Brand Mascot

A character created to represent a brand, aimed at building recognition and affection with consumers.

Spokesperson

Spokesperson is an individual authorized to speak on behalf of an organization, company, or another entity, representing and conveying its viewpoints to the public.