Compute the Present Value of $4,000 Paid in Five Years

question 134

Multiple Choice

Compute the present value of $4,000 paid in five years using the following discount rates: 10 percent in year 1, 2 percent in year 2, 12 percent in year 3, and 9 percent in years 4 and 5.

• A) $2,679.15
• B) $2,206.81
• C) $2,317.03
• D) $2,362.19

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Definitions:

Selling Time

A concept in sales and marketing referring to the optimal moments or periods to pitch or sell products and services to consumers.

Outside Order Getters

Salespeople who work primarily outside the office, seeking new clients and managing sales in the field.

Financial Investment

The act of allocating money or capital to an endeavor with the expectation of receiving additional income or profit.

Firm

A business or company, especially one engaged in a professional service or activity.