If the Present-Value Interest Factor for I Percent and N

question 48

Multiple Choice

If the present-value interest factor for i percent and n periods is 0.270, the future-value interest factor for the same i and n is

• A) 0.730.
• B) 3.797.
• C) 3.704.
• D) 3.777.

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Definitions:

Income Tax Expense

The cost charged against earnings from operations and other activities, representing the amount of income taxes owed to governmental authorities.

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.

After-Tax Discount

A reduction in the price of an item or service that is applied after calculating taxes.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life uniformly.