Consider the Following Timeline Detailing a Stream of Cash Flows

question 15

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 of this stream of cash flows is closest to:

• A)$674
• B)$600
• C)$460
• D)$287

---

Definitions:

Entrepreneurial Leader

An individual who combines visionary thinking and innovation with risk-taking to create and manage successful ventures.

Sensible Risk Taking

The act of undertaking risks that are well-calculated and have the potential for positive outcomes, often contrasted with reckless risk-taking.

Big Risks

Actions or decisions in any context that carry a significant potential for negative outcomes but also potentially high rewards.

Democratic Leader

A person in charge who confers final authority on the group.