What Is the Present Value of $8,000 to Be Received

question 160

Essay

What is the present value of $8,000 to be received at the end of 6 years if the required rate of return is 15%?
Following is a table for the present value of $1 at compound interest: Following is a table for the present value of an annuity of $1 at compound interest:

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Definitions:

Selective Distribution

Lies between the intensive and exclusive distribution strategies; uses a few selected customers in a territory.

Retail Customers

Individuals who purchase goods or services for personal use from retail stores, as opposed to buying for business or resale purposes.

Wholesale Prices

The cost at which goods are sold by wholesalers to retailers, usually lower than the retail price due to the absence of retailer markup.

Wholesalers

Businesses that sell goods in large quantities at lower prices, typically to retailers, other businesses, or professional users, but not directly to the end consumer.