The Present Value of a Future Stream of Cash Flows

question 76

Multiple Choice

The present value of a future stream of cash flows is what that stream

• A)was worth in yesterday's dollars.
• B)is worth in today's dollars.
• C)will be worth in future dollars.
• D)might be worth in future dollars.

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Definitions:

Creativity

The ability to generate novel and valuable ideas or solutions to problems.

Rationalization

A compromise mechanism characterized by trying to justify one’s behavior by constructing bogus reasons for it.

Receptivity

The willingness or readiness to accept or be open to ideas, suggestions, or changes.

Intuition

An understanding or insight gained without the need for conscious reasoning.