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:

Bagels

A dense bread product, often shaped into a ring, made from dough that is boiled before it is baked.

Demand Function

A mathematical model expressing the quantity demanded of a good or service as a function of its price, and possibly other factors.

Demand Function

A mathematical relationship expressing the quantity of a good or service demanded as a function of price.

Chainsaws

Chainsaws are mechanical saws with teeth set on a chain that moves around the edge of a blade, typically used for cutting trees.