Consider the following timeline detailing a stream of cash flows: Date 0 1 2 31 4 ? $5000 $6000 $7000 $8000 Cash flow If the current market rate of interest is 6%, then the present value (PV) of this stream of cash flows is closest to:
Consider the following timeline detailing a stream of cash flows: Date 0 1 2 31 4 ? $5000 $6000 $7000 $8000 Cash flow If the current market rate of interest is 6%, then the present value (PV) of this stream of cash flows is closest to:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![Consider the following timeline detailing a stream of cash flows:
Date
0
1
2
3
4
?
$5000 $6000
$7000
$8000
Cash
flow
If the current market rate of interest is 6%, then the present value (PV) of this stream of cash flows is closest to:
A. $26,725
OB $22,271
C. $11,136
OD. $35,634](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7943a2f-8d0a-4ce9-8c03-a95528e5fee6%2F7deab8c5-4839-45b0-aa9a-d2366d774a35%2Fay68blv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following timeline detailing a stream of cash flows:
Date
0
1
2
3
4
?
$5000 $6000
$7000
$8000
Cash
flow
If the current market rate of interest is 6%, then the present value (PV) of this stream of cash flows is closest to:
A. $26,725
OB $22,271
C. $11,136
OD. $35,634
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