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.
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Chapter1: Investments: Background And Issues
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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
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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