Consider the Following Timeline Detailing a Stream of Cash Flows

question 62

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 (PV) of this stream of cash flows is closest to:

• A)$674
• B)$600
• C)$460
• D)$287
• E)$410

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Definitions:

Valence Electrons

The electrons in the outer shell of an atom that are available for forming bonds with other atoms.

B

In the context of the periodic table, "B" stands for Boron, a chemical element with atomic number 5, known for its ability to form covalent bonds.

Si

The chemical symbol for silicon, a hard, brittle crystalline solid used in semiconductors and as a component of various alloys.

As

A symbol for the chemical element arsenic, which is a metalloid known for its various allotropes and toxicity in many compounds.