What Is the Present Value of the Following Uneven Stream

question 34

Multiple Choice

What is the present value of the following uneven stream of cash flows? Assume a 6% discount rate and end-of-period payments. Round to the nearest whole dollar. Year Cash Flow
1 $3,000
2 $4,000
3 $5,000

• A) $10,588
• B) $11,461
• C) $12,688
• D) $13,591

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Definitions:

Fraudulent Charges

Unauthorized transactions on a person’s credit card or bank account conducted without their knowledge or consent.

Credit Information

Data that pertains to the creditworthiness of an individual or company, including credit history, current debt levels, and payment records.

Identity Theft

Identity theft is the fraudulent acquisition and use of a person's private identifying information, usually for financial gain.