You Are Scheduled to Pay a $350 Cash Flow in One

question 150

Multiple Choice

You are scheduled to pay a $350 cash flow in one year, and receive a $1,000 cash flow in years 3 and 4. If interest rates are 10 percent per year, what is the combined present value of these cash flows?

• A) $991.38
• B) $1,097.14
• C) $1,116.14
• D) $1,213.92

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Definitions:

Fake Cigarettes

Products designed to mimic the appearance and sometimes the sensation of smoking, often used as aids in quitting smoking.

Cause-Effect Relationships

The principle that one event (the cause) directly leads to another event (the effect).

Independent Variable

The variable in an experiment that is manipulated to observe its effect on the dependent variable.

Manipulate

To control or influence something or someone skillfully, often in an unfair manner.