Question
4) Assume that your required rate of return is 12 percent and you are given the following stream of cash flows: Year Cash Flow 0
4) Assume that your required rate of return is 12 percent and you are given the following stream of cash flows:
Year Cash Flow
0 $10,000
1 $15,000
2 $15,000
3 $15,000
4 $15,000
5 $20,000
If payments are made at the end of each period, what is the present value of the cash flow stream?
A. $66,909
B. $57,323
C. $61,815
D. $52,345
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Public Finance
Authors: Harvey S. Rosen
5th Edition
025617329X, 978-0256173291
