The Current Value of Future Cash flOws Discounted at the Appropriate

question 136

Multiple Choice

The current value of future cash flows discounted at the appropriate discount rate is called the:

• A) Principal value.
• B) Future value.
• C) Present value.
• D) Simple interest rate.
• E) Compound interest rate.

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Definitions:

Operating Expenses

The costs associated with the day-to-day activities of running a business, not including the cost of goods sold.

Cost of Merchandise Sold

The direct costs attributable to goods sold by a company, including the purchase price of merchandise, freight, and handling charges, less any discounts received.

Retail Business

A business entity that sells goods or services directly to consumers.

Service Business

A business that provides intangible products or services to customers.