Present Value of $1 Present Value of an Annuity of $1

question 32

Multiple Choice

Present value of $1 Present value of an Annuity of $1

Jan Rigby is considering an investment that will cost $20,000 initially, and return annual cash flows of $10,000 in each of three years.Jan requires a minimum rate of return of 8%.
-What is the present value of the cash inflows? (Note: there may be a rounding error depending on the table you use to compute your answer.Choose the answer closest to the one you calculate.)

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Definitions:

Craving

A powerful desire for something, often used in the context of addictive substances.

Withdrawal

A set of symptoms that occur upon the discontinuation or decrease in intake of a substance that has been used regularly or in psychological contexts, the process of becoming emotionally detached.

Alcohol Dependence

A medical condition characterized by an impaired ability to stop or control alcohol use despite adverse social, occupational, or health consequences.

Tremors

Involuntary, rhythmic muscle movements involving oscillations or shaking of one or more body parts.