What Is the Present Value of $150,000 to Be Received

question 61

Multiple Choice

What is the present value of $150,000 to be received 10 years from today if the discount rate is 11 percent?

• A)$52,827.67
• B)$61,147.07
• C)$64,141.41
• D)$69,806.18
• E)$73,291.06

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Definitions:

Selling

The process of persuading potential buyers to purchase a product or service.

Administrative Expenses

Costs associated with the general administration of a business, such as salaries of executive officers, legal and professional fees.

Flexible Budget

A budget designed to change in response to variations in volume or activity levels.

Food

A substance consumed by living organisms to provide nutritional support, primarily obtained through plants, animals, or fermentation.