Consider the Following Timeline Detailing a Stream of Cash Flows

question 49

Multiple Choice

Consider the following timeline detailing a stream of cash flows:
If the current market rate of interest is 10%,then the present value (PV) of this stream of cash flows is closest to:

• A)$674
• B)$600
• C)$460
• D)$287

---

Definitions:

Duty Of Care

A legal obligation imposed on individuals or organizations to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Breaching

The behavior of violating or not adhering to a law, contract, or set of rules.

Delegate Tasks

The act of assigning responsibilities or duties to another individual or team.

Committees Of Directors

Groups formed by members of a company's board of directors that focus on specific areas of governance, such as audit, finance, or compensation.