What Is the Present Value of the Following Uneven Stream

question 60

Multiple Choice

What is the present value of the following uneven stream of cash flows? Assume a 6% discount rate and end-of-period payments.Round to the nearest whole dollar.

• A)PV = $3,000/[1.06]¹ + $4,000/[1.06]² + $5,000/[1.06]³
• B)PV = $3,000[1.06]₁ + $4,000[1.06]² + $5,000[1.06]³
• C)PV = $3,000/[1.06]⁰ + $4,000/[1.06]¹ + $5,000/[1.06]²
• D)PV = $3,000[1.06]^-0 + $4,000[1.06]^-1 + $5,000[1.06]^-2

Enumerate the primary responsibilities of the addictions counselor in relation to self-help groups and client care.

Identify and differentiate between various types of investments.

Understand and apply the equity method of accounting for investments.

Recognize the accounting treatments for dividends received under the equity method.

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