Consider the following timeline detailing a stream of cash flows:
If the current market rate of interest is 10%,then the present value of this stream of cash flows is closest to:
A)$674
B)$600
C)$460
D)$287

Name: Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 10%,then the present value of this stream of cash flows is closest to: A)$674 B)$600 C)$460 D)$287
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Question

Consider the following timeline detailing a stream of cash flows: 
If the current market rate of interest is 10%,then the present value of this stream of cash flows is closest to:
A)$674 
B)$600 
C)$460 
D)$287

Quizplus · Accepted Answer

C)PV = 100/(1.10)¹ + 100/(1.10)² + 200/(1.10)³ + 200/(1.10)⁴ = $460

Consider the Following Timeline Detailing a Stream of Cash Flows