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10)Use the 10-year cash flow time line below to answer questions 10 and 11: 0 1 2 3 4 5 6 7 8 9 10
10)Use the 10-year cash flow time line below to answer questions 10 and 11:
0 1 2 3 4 5 6 7 8 9 10
$0 $100 $100 $100 $100 $100 $100 $0 $100 $100 $200
Which of the following comes closest to the present value of the cash flow stream if the interest rate is 6%
a. $ 659
b. $ 629
c. $ 691
d. $ 725
e. $ 763
11)Which of the following comes closest to the value at the end of year 10 of the cash flow stream if the interest rate is 6%
a. $ 1,359
b. $ 1,242
c. $ 1,299
d. $ 1,423
e. $ 1,490
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