QUESTION 4 Ann bought a new home entertainment system today from Andre's Electronics. She will receive a cash rebate of $227.00 from Andre's Electronics today, pay $718.00 to Andre's Electronics in 1 year, receive a cash rebate of $1,642.00 from Andre's Electronics in 2 years, and pay $4,981.00 to Andre's Electronics in 4 years. If the discount rate is 18.21 percent, then what is the present value of the cash flows associated with this transaction? O $-541.47 (plus or minus 3 dollars) O $-1,756.26 (plus or minus 3 dollars) O $-2,220.78 (plus or minus 3 dollars) O $-1,203.64 (plus or minus 3 dollars) none of the answers are within 3 dollars of the correct answer

QUESTION 4 Ann bought a new home entertainment system today from Andre's Electronics. She will receive a cash rebate of $227.00 from Andre's Electronics today, pay $718.00 to Andre's Electronics in 1 year, receive a cash rebate of $1,642.00 from Andre's Electronics in 2 years, and pay $4,981.00 to Andre's Electronics in 4 years. If the discount rate is 18.21 percent, then what is the present value of the cash flows associated with this transaction? O $-541.47 (plus or minus 3 dollars) O $-1,756.26 (plus or minus 3 dollars) O $-2,220.78 (plus or minus 3 dollars) O $-1,203.64 (plus or minus 3 dollars) none of the answers are within 3 dollars of the correct answer

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 23PROB

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Bertha bought a new home entertainment system today from Andre's Electronics. She will receive a cash-rebate of $232.00 from Andre's Electronics today, pay $719.00 to Andre's Electronics in 1 year, receive a cash rebate of $1,638.00 from Andre's Electronics in 2 years, and pay $4,985.00 to Andre's Electronics in 4 years. If the discount rate is 18.38 percent, then what is the present value of the cash flows associated with this transaction? O $-1,744.87 (plus or minus 3 dollars) O $-2,211.42 (plus or minus 3 dollars) O $-530.14 (plus or minus 3 dollars) O $-1,200.61 (plus or minus 3 dollars) O none of the answers are within 3 dollars of the correct answer
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