You will be receiving the following cashflows: $7,000 today, $4,000 in two years, and $10,000 in five years. If the appropriate discount rate is 5.5%,what is the present value of this cashflow stream?a. $12,623O b. $18,245O c. $23,387O d. $21,052O e. $15,408O f. $15,783g. $9,789h. $17,739

Present value is the sum of future cashflows

You will be receiving the following cashflows: $7,000 today, $4,000 in two years, and $10,000 in five years. If the appropriate discount rate i what is the present value of this cashflow stream? O a. $12,623 O b. $18,245 O c. $23,387 O d. $21,052 e. $15,408 O f. $15,783 g. $9,789 O h. $17,739

You will be receiving the following cashflows: $7,000 today, $4,000 in two years, and $10,000 in five years. If the appropriate discount rate i what is the present value of this cashflow stream? O a. $12,623 O b. $18,245 O c. $23,387 O d. $21,052 e. $15,408 O f. $15,783 g. $9,789 O h. $17,739

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

You will be receiving the following cashflows: $7,000 today, $4,000 in two years, and $10,000 in five years. If the appropriate discount rate is 5.5%,
what is the present value of this cashflow stream?
a. $12,623
O b. $18,245
O c. $23,387
O d. $21,052
O e. $15,408
O f. $15,783
g. $9,789
h. $17,739

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