What Is the Present Value of a $100,000 Cash Flow

question 69

Multiple Choice

What is the present value of a $100,000 cash flow to be received at the end of each of the next 15 years from an account that earns an annual rate of 10%?

• A)$1,500,000
• B)$760,608
• C)$523,450
• D)$976,455

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Definitions:

Functional Group

A specific grouping of atoms within molecules that is responsible for the characteristic chemical reactions of those molecules.

Organic Explosives

Explosive materials composed of organic chemicals that produce a detonation or rapid expansion of gases to generate destructive effects.

Combustion

A chemical reaction that occurs when a substance reacts with oxygen to give off heat and light, often producing flame.

Explosives

A rephrased definition: Chemical compounds or mixtures that release a large amount of energy in a very short time through blasts or combustion.