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What Is the Present Worth of the Cash Flows in Table

Question 9

Multiple Choice

What is the present worth of the cash flows in table below? Use an interest rate of 6% compounded annually.
   Year 12345620 Cash flow 6,0005,0004,0003,0002,00010,000\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Year } & 1 & 2 & 3 & 4 & 5 & 6 - 20 \\\hline \text { Cash flow } & 6,000 & 5,000 & 4,000 & 3,000 & 2,000 & 10,000 \\\hline\end{array}


A) $89,263
B) $85,496
C) $89,915.77
D) $91,611

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