Consider the Following Timeline Detailing a Stream of Cash Flows

question 60

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) $10,114
• B) $20,227
• C) $24,272
• D) $32,363

---

Definitions:

Influenza

A highly contagious viral infection of the respiratory passages causing fever, severe aching, and often leading to serious complications.

Pleuritis

A condition in which the pleura become inflamed, which causes them to stick together. It can also cause an excess amount of fluid to form between the membranes.

Pneumoconiosis

Lung diseases that result from years of exposure to different environmental or occupational types of dust.

Anthracosis

Chronic lung disease caused by the inhalation of coal deposits; also known as black lung disease.