What Is the Present Value of the Following Cash Flow

question 62

Multiple Choice

What is the present value of the following cash flow stream at an interest rate of 12.0% per year: $0 at Time 0; $1,500 at the end of Year 1; $3,000 at the end of Year 2; $4,500 at the end of Year 3; and $6,000 at the end of Year 4?

• A)$10,209.64
• B)$10,746.99
• C)$11,284.34
• D)$11,848.55

---

Definitions:

Entrepreneur

An individual or a group who creates something new—a new idea, a new item or product, a new institution, a new market, a new set of possibilities.

Manually

Performing a task or operation by hand, without the use of automated systems or technology.

Entrepreneurial Experimentation

The act of trying out new ideas, products, or business models to learn and adapt in an entrepreneurial context, often involving risks.

Fear of Failure

The apprehension of falling short of one’s goals, which can deter individuals from taking risks or pursuing certain opportunities.