You Want to Find the Equivalent Present Worth for the Following

question 15

Multiple Choice

You want to find the equivalent present worth for the following cash flow series at an interest rate of 15%. Which of the following statements is incorrect?

• A) \( \$ 1,000(P / A, 15 \%, 4)+\$ 2,000+\$ 2,000(P / F, 15 \%, 5) \)
• B) \( \$ 1,000(P / F, 15 \%, 5)+\$ 1,000(P / A, 15 \%, 5)+\$ 2,000 \)
• C) \( [\$ 1,000(F / A, 15 \%, 5)+\$ 1,000](P / F, 15 \%, 5)+\$ 2,000 \)
• D) \( [\$ 1,000(F / A, 15 \%, 4)+\$ 2,000](P / F, 15 \%, 4)+\$ 2,000 \)

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Definitions:

Unregulated

Activities or industries that operate without governmental control or oversight.

Tires

Manufactured products designed to cover wheels, providing traction and absorbing shock for vehicles.

Excess Supply

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price, leading to surplus.

Sunglasses

Protective eyewear designed to prevent bright sunlight and high-energy visible light from damaging or discomforting the eyes.