What Is the Present Value of the Following Cash Flow

question 113

Multiple Choice

What is the present value of the following cash flow stream at a rate of 11.5%? ​

• A) $9,109.07
• B) $9,282.58
• C) $8,328.29
• D) $9,369.33
• E) $8,675.31

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Definitions:

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed deviation in data is due to chance.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution minus the number of parameters estimated.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is true, commonly set at 0.05 or 5%.

Chi-Square Value

A statistic that measures the difference between observed and expected frequencies to test for independence in categorical variables.