Multiple Choice
What is the present value of the following cash-flow stream if the interest rate is 6\% per year?
\[
\begin{align*}
\text{Year 1:} & \quad \$1,000 \\
\text{Year 2:} & \quad \$1,000 \\
\text{Year 3:} & \quad \$1,000
\end{align*}
\]
(A) \$2,673.01
(B) \$2,833.39
(C) \$2,545.95
(D) \$3,000.00
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