Find the present value of the following stream of cash flows, assuming that the firm's opportunity cost is 9 percent.
A) $ 13,252
B) $141,588
C) $ 10,972
D) $ 79,348

Question

Find the present value of the following stream of cash flows, assuming that the firm's opportunity cost is 9 percent. 
A) $ 13,252 
B) $141,588 
C) $ 10,972 
D) $ 79,348

Quizplus · Accepted Answer

To find the present value, we need to discount each cash flow by the opportunity cost of the firm, which is 9 percent. Using a financial calculator or Excel, we can find that the present value of the cash flows is $79,348. Therefore, the correct answer is D.

Find the Present Value of the Following Stream of Cash