The Present Discounted Value of $60,000 to Be Received at the End

question 23

Multiple Choice

The present discounted value of $60,000 to be received at the end of three years when the interest rate is 10 percent is closest to

• A)$45,079.
• B)$49,587.
• C)$60,000.
• D)$79,860.

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Definitions:

Investing Activities

Financial actions related to acquiring or disposing of non-current assets, part of a company's cash flow statement.

Bonds Payable

A long-term liability account that represents the amount owed by an entity to bondholders, to be repaid at a future date.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reflecting its decrease in value over time.

Net Income

The remaining profit of a corporation once every expense, tax, and additional cost is deducted from the overall revenue.