The Present Value of Receiving M Dollars Two Years from Now

question 153

Multiple Choice

The present value of receiving M dollars two years from now when the prevailing interest rate is i is equal to

• A)M - i²
• B)M ´ i²
• C)M/i
• D)M/(1 - i)
• E)M/(1 + i)²

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Definitions:

LPT

Shortest Processing Time, a rule used in job sequencing to minimize the total processing time by scheduling jobs in ascending order of their processing times.

EDD

Expected Due Date, often used in project management and logistics to estimate when tasks or shipments will be completed or arrive.

Dispatching Rule

A guideline or policy used to prioritize and assign tasks or jobs in operational settings.