If the Discount Rate Is 12%, What Is the Present

question 233

Multiple Choice

If the discount rate is 12%, what is the present value of the following cash flows: $\begin{array}{ll}\text { Year } & \text { CashFlow } \\\hline 1 & \$ 10,000 \\2 & \$ 11,000 \\3 & \$ 12,000 \\4 & \$ 13,000 \\5 & \$ 14,000 \\6-15 & \$ 15,000 \text { each year }\end{array}$

• A) $144,618
• B) $127,923
• C) $127,197
• D) $90, 537

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Definitions:

Identity Crisis

According to Erikson, a period of inner conflict during which one examines one’s values and makes decisions about one’s life roles.

Operant Conditioning

A simple form of learning in which an organism learns to engage in behavior that is reinforced.

Latency Stage

In psychoanalytic theory, the fourth stage of psychosexual development, characterized by repression of sexual impulses and development of skills.

Genital Stage

A phase in Freud's psychosexual development theory during which an individual's main source of pleasure is their genital area.