Moving Cash Flows What Is the Value in Year 3

question 110

Multiple Choice

Moving Cash Flows What is the value in year 3 of a $500 cash flow made in year 5 when interest rates are 6 percent?

• A)$374
• B)$420
• C)$440
• D)$445

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Definitions:

Interpretivism

A research paradigm that emphasizes the understanding of social phenomena through the meanings that people assign to them.

Rationalism

The view that knowledge is best acquired by reason and factual analysis rather than faith or emotion.

Positivism

The idea that phenomena are governed by, and can be explained by, rules based on objective observation and generalizations from those observations.

Explanation

An attempt to account for the relationships observed among phenomena. A basic goal of communications research is to explain how and why communication phenomena occur.