The Present Discounted Value of $100 to Be Received One

question 66

Multiple Choice

The present discounted value of $100 to be received one year from now,if the interest rate is 2.5 percent,is closest to

• A)$98.
• B)$100.
• C)$103.
• D)$95.

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Definitions:

Total Investment

The sum of all expenditures on physical assets, financial assets, and other types of investments within a specified period.

Expected Rate of Return

The anticipated percentage of gain or loss that an investment is projected to generate over a specified period, accounting for all known risks.

Total Investment

The sum of all expenditures on capital assets, such as buildings, equipment, and inventories, over a specific period.

Investment Spending

Expenditures on capital goods used to increase productive capacity or efficiency, including factories, machinery, and technology.