Exam 4: The Time Value of Money

Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 8%,then the present value of this stream of cash flows is closest to:

Use the table for the question(s) below. -If the interest rate is 6%,then the NPV of investment "B" is closest to:

The British government has a consol bond outstanding that pays ₤100 in interest each year.Assuming that the current interest rate in Great Britain is 5% and that you will receive your first interest payment immediately upon purchasing the consol bond,then the value of the consol bond is closest to:

When money moves forward on the timeline,the money should be