You Will Receive $100 at the End of Year One,$200

question 54

Multiple Choice

You will receive $100 at the end of year one,$200 at the end of year two,and $300 at the end of year three.What is the present value of these cash flows today if the discount rate is 13 percent annually?

• A)$553
• B)$453
• C)$423
• D)$383

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Definitions:

Preference

The selection of one item, idea, or action over another based on subjective likes or dislikes.

Mother's Voice

The auditory recognition by infants and children of their mother’s voice, which is known for its comforting and bonding effects.

Moro Reflex

An involuntary startle response seen in newborns, which is a sign of normal neurological development.

Infant's Reaction

The responses or behaviors demonstrated by a baby in response to internal or external stimuli, encompassing a wide range of physical and emotional reactions.