What Is the Present Value of $1,000 Received 2 Years

question 54

Multiple Choice

What is the present value of $1,000 received 2 years from today if the nominal interest rate is 9% and compounded monthly?

• A) $842
• B) $914
• C) $833
• D) $836

Analyze different economic stimuli and their effectiveness in various contexts.

Understand the principle behind selecting projects based on equivalent annual annuity and its application to different project types.

Comprehend the conditions under which a project may have more than one IRR and the implications for capital budgeting.

Recognize the limitations and applicability of MIRR in comparison to the NPV method for evaluating mutually exclusive projects.

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Definitions:

Consumer Product Safety

Regulations and standards designed to protect the health and safety of consumers by ensuring that products meet certain criteria before they can be sold.

Product Quality

The measure of a product's ability to fulfill or exceed customers' expectations, often evaluated through attributes like durability, reliability, and design.

Financial Perspective

An aspect in business strategy focusing on financial metrics like revenue growth, profitability, and shareholder value to assess a company’s performance.

Consumer Bill of Rights

A set of principles designed to protect consumer interests, ensuring they have the right to safety, to be informed, to choose, and to be heard.