What Is the Present Value of a $150,000 Cash Flow

question 3

Multiple Choice

What is the present value of a $150,000 cash flow to be received at the end of each of the next 20 years from an account that earns an annual rate of 9%?

• A)$3,000,000
• B)$7,674,018
• C)$1,369,282
• D)$2,324,169

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Definitions:

Critical Period

A specific time during development when a particular event has its greatest consequences and the presence of certain kinds of environmental stimuli is necessary for development to proceed normally.

Innate Tendency

An natural or instinctual inclination or propensity in living organisms towards certain behaviors, reactions or developments.

Goslings

Young geese that have not yet reached maturity.