You Will Be Receiving $204,000

question 19

Multiple Choice

You will be receiving $204,000.00 at the end of each year for the next 20 years.If the correct discount rate for such a stream of cash flows is 10% then what is the present value of the cash flows?

• A) $1,736,767.00
• B) $4,080,000.00
• C) $185,454.55
• D) none of the above

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Definitions:

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, pretending, knowledge—to oneself and others and to understand that others have beliefs, desires, and intentions that are different from one's own.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).

False Belief

A misunderstanding or incorrect interpretation about the state of the world, often studied in the context of cognitive and developmental psychology.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others.