An Investor Receives X Dollars at the End of Each

question 90

Multiple Choice

An investor receives X dollars at the end of each of the next 3 years.If the present value of her investment is $10 million,what is her yearly cash flow,given that the interest rate is 5%?

• A)$3.672 million
• B)$3.33 million
• C)$2.5 million
• D)$2.879 million
• E)$3.472 million

---

Definitions:

Utility Function

A representation in economics that measures preferences over a set of goods and services, often in order to derive an individual's optimal choice under constraints.

Income Bundle

A combination of goods and services that a consumer can purchase with their available income.

New Prices

The latest prices for goods or services, updated from previous values due to factors such as inflation, demand, or production costs.

Utility Function

A representation of a consumer's preference ranking over a set of goods and services, quantifying the satisfaction from each possible choice.