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You have been given the following information about the cash flows for a project: 0 1 2 3 4 5 6 7 8 9 10

You have been given the following information about the cash flows for a project: 0 1 2 3 4 5 6 7 8 9 10 |---------|---------|---------|---------|---------|---------|---------|---------|--------|--------| 2,000 2,000 2,000 2,000 2,000 Based on the above cash flows, you have just entered the following information into your calculator. The cash flows you are entering into the calculator occur, as shown on the above time line. Note that your calculator is set in the end mode. PMT = $2,000 N = 5 I = 10 PV = ? = 7,581.57 From this calculation you get an answer of $7,581.57. You switch your calculator to the beg mode. You then enter the following information into your calculator. FV = 7,581.57 I = 10 N = 2 PV = ? You get the answer $6,265.76. $6,265.76 represents the value of these payments at which point on the above time line? A. 0 B. 1 C. 2 D. 3 E. 4 F. 5 G. 6

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