What Is the Present Value of the Following Cash Flow

question 80

Multiple Choice

What is the present value of the following cash flow stream at a rate of 11.00%? ​

• A) $523.93
• B) $362.72
• C) $447.80
• D) $465.71
• E) $501.54

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Definitions:

Accrued Expense

Expenses that are recognized on the books before they have been paid, reflecting costs incurred during a particular period.

Adjusting Entry

An accounting record made to allocate income and expenditures to the appropriate accounting periods.

Interest Payable

Accrued interest that a company owes to its creditors or on its debts but has not yet paid.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.