The Present Value of Annuity Payments Made Far into the Future

question 16

Multiple Choice

The present value of annuity payments made far into the future is

• A) worth very little today.
• B) worth much more today.
• C) valued as having no time value of money.
• D) valued as worthless as their value is not determinable.

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Definitions:

Disadvantages

The negative, less favorable aspects or conditions of a situation, proposal, or plan.

Stock Options

Financial instruments granting the holder the right to buy or sell shares of a company's stock at a predetermined price within a specified timeframe.

Stock Purchase Plans

Programs offered by companies allowing employees to purchase company stock often at a discount, as part of their benefits package.