At the End of the Next Four Years,a New Machine

question 57

Multiple Choice

At the end of the next four years,a new machine is expected to generate net cash flows of $8,000,$12,000,$10,000,and $15,000,respectively.What are the cash flows worth today if a 3% interest rate properly reflects the time value of money in this situation?

• A)$41,557.
• B)$47,700.
• C)$32,403.
• D)$38,108.

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Definitions:

Anxious

Experiencing worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.

Assimilation

The cognitive process of integrating new information into existing cognitive schemas, perceptions, and understanding.

Accommodation

In psychology, the process by which individuals adjust their schemas or frameworks to incorporate new information.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched, a concept developed in early childhood.