Question
Consider a project with the following cash flows: Year 0:Cash flow = $500 Year 1:Cash flow = $0 Year 2:Cash flow = -$500 If the
Consider a project with the following cash flows:
Year 0:Cash flow = $500
Year 1:Cash flow = $0
Year 2:Cash flow = -$500
If the current market rate of interest is 8% per year, compounded annually, what is the value of this stream of cash flows expressed in terms of dollars at year 1?(Note:This does not ask for the value as of year 0, but rather, as of year 1.)
a.$133
b.$0
c.$77
d.$250
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
