What Is the Value in Year 3 of a $250

question 125

Multiple Choice

What is the value in year 3 of a $250 cash flow made in year 15 when interest rates are 12 percent?

• A) $45.67
• B) $64.17
• C) $177.95
• D) $220.00

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Definitions:

Root-cause Analysis

A method of problem solving that aims to identify the fundamental reasons for faults or problems.

Data Trimming

The procedure of removing extreme values from data to mitigate their effect on the analysis.

Weighted Average

An average that takes into account the relative importance or weight of each value in the data set.

Purchase Price

The amount of money paid or agreed to be paid to buy something.