Question: Where applicable, and if not specifically addressed in the question, assume interest is compounded annually ( i.e. P/Y = 1 ) , at the end

Where applicable, and if not specifically addressed in the question, assume

Where applicable, and if not specifically addressed in the question, assume interest is compounded annually ( i.e. P/Y = 1) , at the end of each year. The only exception will be for the mortgage problem (#34), which will have payments and interest calculated on a monthly basis, at the end of each month.

If the interest rate is 6%, what is the present value of a positive cash-flow stream that includes a cash flow of $100 at the end of year 1, $200 at the end of year 2, and $150 at the end of year 3? A. $396.28 B. $397.28 C. $398.28 D. $399.28 E. None of the above

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