Renfro Corporation Will Receive $20,000 Today (January 1, 2006), and Also

question 36

Multiple Choice

Renfro Corporation will receive $20,000 today (January 1, 2006) , and also on each January 1st for the next five years (2007 - 2011) .What is the present value of the six $20,000 receipts, assuming a 12% interest rate.?

• A)$82,228.
• B)$92,096.
• C)$162,304.
• D)$181,780.

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Definitions:

Vicarious Liability

A legal principle where one party is held liable for the actions of another party, such as an employer being responsible for the acts of its employees.

Strict Liability

A legal principle where responsibility for damages is assigned without the need to prove negligence or fault.

Duty of Care

A legal obligation imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could harm others.

Vicarious Liability

A legal principle where one party is held liable for the actions of another party, typically in employer-employee relationships.