You will receive the following cash flows at the end of each year for the next 5 years. Year 1: $1,500; Year 2: $3,500; Year 3: $9,500; Year 4: $0; Year 5: $1,500. You can invest the money at an annual return rate of 8%. What is the present value of this stream of future cash flows? Group of answer choices $12,325.07 $12,951.86 $13,033.53 $13,988.00

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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You will receive the following cash flows at the end of each year for the next 5 years. Year 1: $1,500; Year 2: $3,500; Year 3: $9,500; Year 4: $0; Year 5: $1,500. You can invest the money at an annual return rate of 8%. What is the present value of this stream of future cash flows?

Group of answer choices
$12,325.07
$12,951.86
$13,033.53
$13,988.00
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