If the Interest Rate Is 6 Percent, the Net Present

question 37

Multiple Choice

If the interest rate is 6 percent, the net present value of $100 to be received two years from now is

• A) $79.72.
• B) $86.
• C) $89.
• D) $100.

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Definitions:

Cash In Hand

The amount of liquid money or physical currency that a company or individual has readily available.

Bills Receivable

Financial documents representing money owed to a business by its customers that is payable within a short period.

Inventories

Quantities of goods and materials that a business holds for the purpose of sale or production.

Quick Ratio

A financial metric indicating a company's ability to meet short-term liabilities with its most liquid assets, excluding inventory.