Consider the Following Timeline Detailing a Stream of Cash Flows

question 23

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)$287
• C)$460
• D)$600

---

Definitions:

Architecture Neutral

A term describing software that can run on any hardware platform or operating system without modification.

CPUs

Central Processing Units; the primary component of a computer that interprets and executes instructions from software and hardware.

Application Programming Interface

A set of rules and protocols that allows different software applications to communicate with each other.

Documentation

Description of the technical details of the software, how the code works, and how the user interacts with the program; in addition, all the necessary user documentation that will be distributed to the program’s users.