Suppose You Have Two Clients Who Need Your Services for Two

question 108

Essay

Suppose you have two clients who need your services for two years.One agreed to pay you $50,000 one year from now and another $50,000 in two years while the other paid $35,000 after one year,but $65,000 after two years.Assuming an interest rate of 10%,which one has a higher present value? Round off to the nearest dollar.

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Definitions:

Inputs

Resources such as raw materials, labor, and capital that are used in the production process to create outputs.

Enterprise

A business or company, especially when considered in terms of its size, complexity, or organizational structure.

Downstream Partners

Companies or entities that perform activities in the later stages of the supply chain, closer to the end consumers, such as distributors and retailers.

Upstream Partners

Businesses or individuals that provide raw materials, components, or services to another company for the production of goods.