A Report from the Marketing Department Indicates That a New

Multiple Choice

A report from the marketing department indicates that a new product will generate the following revenue stream: $62,500 in the first year,$89,400 in year two,$136,200 in year three,$128,300 in year four,and $112,000 in year five.If your firm's discount rate is 11% and the cash flows are received at the end of each year,what is the present value of this cash flow stream?

A) $379,435.35
B) $421,173.24
C) $476,036.04
D) $528,400.00