Payments of $1,400 and $2,500 Were Due 90 Days Ago

question 119

Multiple Choice

Payments of $1,400 and $2,500 were due 90 days ago and 120 days ago, respectively. What is the combined economic value today of these payments if money can earn 9%?

• A) $3,943.58
• B) $3,859.22
• C) $4,005.04
• D) $4,111.11
• E) $3,797.76

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Definitions:

Discontinued Operations

Discontinued Operations refer to segments or components of a business that have been sold, disposed of, or abandoned and are reported separately on the income statement, as their performance is not indicative of ongoing operations.

Horizontal Analysis

An accounting method that compares financial data across multiple periods to identify trends and growth patterns.

Trend Analysis

The practice of collecting information and attempting to spot a pattern or trend in the data, commonly used in financial analysis, market research, and operational management.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.