Find the Future Value at the End of Year 3

question 113

Multiple Choice

Find the future value at the end of year 3 of the following stream of cash flows received at the end of each year,assuming the firm can earn 17 percent on its investments.

• A)$16,320
• B)$20,127
• C)$23,548
• D)$27,551

---

Definitions:

Chapters

Sections or divisions in documents or publications, such as books, typically indicating a change in subject, theme, or story progression.

Unsystematic Risk

The risk of price changes in a company's stock due to factors specific to the company, as opposed to market-wide factors.

Treasury Bills

Short-term U.S. government debt obligations maturing in one year or less, considered a safe and liquid investment.

Risky Portfolio

A collection of investments that has a higher standard deviation, but potentially higher returns.