What Is the Present Value (PV)of $1 Million Received 100

question 25

Multiple Choice

What is the present value (PV) of $1 million received 100 years from now,assuming the interest rate is 5% per year?

• A)$10,000
• B)$7,604
• C)$9,524
• D)$11,114
• E)$112

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Definitions:

Different Product

A good or service that is distinct from others in its category, often possessing unique characteristics or features.

Demand

The quantity of a product or service that consumers are willing and able to purchase at a given price.

Safety Inventory

The extra inventory held to mitigate the risk of stockouts due to uncertainties in demand or supply.

Warehouse Inventory

Encompasses the goods and materials held in a storage space awaiting further distribution or sale, essential for managing supply chain efficiency.