Krysel Inc. is expecting a new project to begin producing cash flows at the end of this year. They expect cash flows to be as follows:

If they can reinvest these cash flows to earn a return of $9\mathrm{.}2$ percent, what is the future value of this cash flow stream at the end of five

years? $($Round to the nearest dollar.$)$

$$4,468,692$

$$4,368,692$

$$4,429,046$

$$4,529,046$

Which of the following statements is true of annual percentage rate $($APR$)?$

The APR calculation adjusts for the effects of compounding and, hence, the time value of money.

The APR takes compounding into account.

The APR is the true cost of borrowing and lending.

The APR is similar to the quoted interest rate, which is a simple annual rate.