Calculate the Amount Today That Is Equivalent to $150 at the End

question 71

Multiple Choice

Calculate the amount today that is equivalent to $150 at the end of year 1, $450 at the end of year 2, and $300 at the end of year 3, given a discount rate of 10%.

• A)$695
• B)$710
• C)$755
• D)$734
• E)$1,100

Learn to organize and write effective business reports, including feasibility reports, justification reports, proposals, and others.

Recognize the importance and use of transitions in maintaining the flow and clarity of reports.

Gain the ability to recommend actions within communications clearly and effectively.

Distinguish between various report organization patterns such as general-to-particular, particular-to-general, pro-con, and problem-solution.

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Definitions:

Profit Margin

A financial ratio indicating the percentage of revenue that exceeds the cost of goods sold, representing the proportion of each dollar of revenue that constitutes net profit.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that companies use for financial reporting.

GAAP

General Accepted Accounting Principles, which are a set of accounting standards and procedures used in the US to ensure consistency in financial reporting.