Consider the Following Timeline Detailing a Stream of Cash Flows

question 9

Multiple Choice

Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 8%,then the future value (FV) of this stream of cash flows is closest to:

• A)$11,699
• B)$10,832
• C)$12,635
• D)$10,339
• E)$13,605

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Definitions:

Laundry Bag

A bag used for collecting, transporting, and possibly sorting dirty laundry before washing.

Superfatted Soap

A type of soap that contains extra fats or oils, beyond what is needed to react with the lye, to moisturize the skin.

Microorganisms

Tiny living organisms, such as bacteria, viruses, fungi, and protozoa, that can only be seen under a microscope.

Contaminated

Something that has been made impure or unsuitable by contact or mixture with an unclean or harmful substance.