If an Individual Put $4,000 in a Savings Account Today

question 34

Multiple Choice

If an individual put $4,000 in a savings account today, what amount of cash would be available two years from today?

• A)$4,000 × 0.826
• B)$4,000 × 0.826 × 2
• C)$4,000 ÷ 0.826
• D)$4,000 ÷ 0.909 × 2

Understand the basic principles of business process reengineering.

Recognize the impact of motivation on employee attendance and productivity.

Identify strategies for regulating departmental work flow to maximize efficiency.

Comprehend the role and benefits of outsourcing in business operations.

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Definitions:

Value Foregone

The opportunity cost of choosing one investment or action over another, representing the benefits lost from not selecting the alternative.

Cost of Capital

The lowest return required for a project involving capital investment, such as building a new production plant, to be deemed feasible.

Mutually Exclusive

In project selection or decision making, mutually exclusive refers to options where the selection of one option precludes the selection of another.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.