Question
An investment promises the following cash flow stream: $0 at Time 0; $75 at the end of Year 1 (or at T=1); $225 at the
An investment promises the following cash flow stream: $0 at Time 0; $75 at the end of Year 1 (or at T=1); $225 at the end of Year 2; $0 at the end of year 3; and $300 at the end of Year 4. At a discount rate (or required rate of return) of 6.5%, what is the future value of the cash flow stream?
| A. | $553.69 | ||
| B. | $582.83 | ||
| C. | $613.51 | ||
| D. | $526.01 | ||
| E. | $645.80 |
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How Finance Works
Authors: Mihir Desai
1st Edition
1633696707, 978-1633696709
