Find the Present Value of the Following Stream of a Firm's

question 109

Multiple Choice

Find the present value of the following stream of a firm's cash flows, assuming that the firm's opportunity cost is 9 percent.

• A) $ 13,252
• B) $141,588
• C) $ 10,972
• D) $ 79,345

---

Definitions:

Slope

In mathematics, the slope represents the steepness or angle of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Simple Linear Regression

A statistical method for modeling the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Least Squares

A mathematical method used to determine the best-fitting line through a set of data points by minimizing the sum of the squares of the differences between observed and estimated values.

Standard Deviation

A measure of the dispersion or variability of a set of data points around the mean, indicating how spread out the data points are.