Barkley Company Will Receive $100,000 in a Future Year

question 24

Multiple Choice

Barkley Company will receive $100,000 in a future year.If the future receipt is discounted at an interest rate of 8%, its present value is $63,017.In how many years is the $100,000 received?
As per page 6-17 we have updated.

• A)5 years
• B)6 years
• C)7 years
• D)8 years

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Definitions:

Divisional Organizational Structure

Is an organizational form in which the company is divided into semi-autonomous units, each focusing on a specific product line or geographic area.

Divisional Structure

A type of organizational structure where operations are grouped based on distinct products or services, serving different markets.

Duplication

Reproduction or copying of a process, product, or service in order to achieve redundancy or increase capacity.

Underutilization

The condition of not using resources, skills, or talents to their full potential, often within a workforce context.