Consider the Following Timeline Detailing a Stream of Cash Flows

question 49

Multiple Choice

Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 6%, then the future value (FV) of this stream of cash flows is closest to:

• A)$1 626
• B)$1 500
• C)$1 288
• D)$1 723

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Definitions:

Gross Profit Ratio

A financial metric that indicates the portion of sales revenue exceeding the cost of goods sold, expressed as a percentage.