Capital Formation, Investment Choice, Information Technology, And Technical Progress
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- Capital Formation, Investment Choice, Information Technology, And Technical Progresseconomics-mcqs › capital-formation-investment-choice-information-technology-and-technical-progress
- Published
- 2 Jun 2019
- Last updated
- 28 May 2026
A project generates a net cash flow of $200 annually for 4 years, with no income afterward. If the discount rate is 5%, what is the present value of this income stream over the 4-year period?
Multiple choice question for Capital Formation, Investment Choice, Information Technology, And Technical Progress. Select an option, then review the explanation below.
Explanation
The total undiscounted sum is $200 × 4 = $800. Since the discount rate is 5%, the present value will be slightly less than $800 but close to it. Among the given options, $800 is the correct choice representing the approximate discounted value.
More Capital Formation, Investment Choice, Information Technology, And Technical Progress MCQs
Practice related questions from the same subject.
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