Assume That Your Required Rate of Return Is 12 Percent

Multiple Choice

Assume that your required rate of return is 12 percent and you are given the following stream of cash flows: $$\begin{array} { l c } \underline{ \text {Year } } & \underline{\text { Cash Flow} } \\1 & \$ 10,000 \\2 & 15,000 \\3 & 15,000 \\4 & 15,000 \\5 & 15,000 \\5 & 20,000\end{array}$$ If payments are made at the end of each period, what is the present value of the cash flow stream?

A) $66,909
B) $57,323
C) $61,815
D) $52,345
E) $62,029