The Table Above Shows the Interest Rates Available from Investing

question 74

Multiple Choice

$\begin{array}{lcccc}\text { Term in years: } & \mathbf{2} & \mathbf{5} & \mathbf{1 0} & \mathbf{3 0} \\\hline \text { Rate: } & 2.25 \% & 3.125 \% & 3.5 \% & 4.375 \%\end{array}$ The table above shows the interest rates available from investing in risk-free Government securities with different investment terms. If an investment offers a risk-free cash flow of $100,000 in ten years' time, what is the present value (PV) of that cash flow?

• A) $80,051
• B) $70,892
• C) $73,512
• D) $78,320

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Definitions:

Scenario Planning

A strategic planning method used to make flexible long-term plans based on different possible future scenarios.

Contingency Planning

The development of strategies and actions to prepare for and respond to unexpected events or emergencies that could negatively impact operations.

Long-term Version

The ability to focus on and plan for future achievements and outcomes over an extended period.

Scenario Planning

A strategic planning method that organizations use to envision and prepare for various future scenarios or outcomes.