The Future Value of $100 That Earns 10% Annually for N

question 79

Multiple Choice

The future value of $100 that earns 10% annually for n years is best expressed by which of the following?

• A) $100(0.1)ⁿ
• B) $100 × n × (1.1)
• C) $100(1.1)ⁿ
• D) $100/(1.1)ⁿ

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Definitions:

Working Capital

Working capital refers to the difference between a company's current assets and current liabilities. It is an indicator of a company's operational liquidity and short-term financial health.

After-Tax Discount Rate

A discount rate that has been adjusted to reflect the impact of taxes.

Straight-Line Depreciation

A technique for determining the depreciation of an asset through uniformly distributing its cost across its lifespan.

Operating Cash Inflow

The cash generated from a company's normal business operations, reflecting its ability to generate consistent earnings.