Consider the Following Timeline Detailing a Stream of Cash Flows

question 18

Multiple Choice

Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 8%, then the future value (FV) of this stream of cash flows is closest to ________.

• A)$11,699
• B)$5850
• C)$14,039
• D)$18,718

---

Definitions:

Payables Manager

A financial professional responsible for managing a company's accounts payable, ensuring timely payment of invoices and maintaining vendor relationships.

Accounts Receivable Balance

The overall financial dues that customers owe a business for the receipt of goods or services which are unpaid.

Finance Charges

The cost of borrowing money, including interest and other fees, that a lender charges a borrower for the use of funds.

Accounts Receivable Period

The average number of days it takes a company to collect payment after a sale has been made.