Consider the Following Timeline Detailing a Stream of Cash Flows

question 40

Multiple Choice

Consider the following timeline detailing a stream of cash flows:
If the current market rate of interest is 8%,then the present value of this stream of cash flows is closest to:

• A) $22,871
• B) $21,211
• C) $24,074
• D) $26,000

---

Definitions:

Tenant-days

A measure used in the hospitality or real estate industry to calculate the total number of days all units were occupied by tenants.

Wages and Salaries

Payments made to employees for their services within a specific time period, including both hourly wages and fixed salaries.

Activity Variance

The difference between actual activity levels and planned or standard activity levels, often analyzed in budgeting and performance management.

Budgeting

The process of creating a plan to spend your money, outlining projected income and expenses over a specific period.