If Peregrine Consumes (1, 400, 1, 210)and Earns (900, 1

question 27

Multiple Choice

If Peregrine consumes (1, 400, 1, 210) and earns (900, 1, 760) and if the interest rate is 10%, the present value of his endowment is

• A)$2,660.
• B)$2,500.
• C)$2,610.
• D)$5,250.
• E)$6,150.

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Definitions:

Standard Cost

A predetermined cost of manufacturing, purchasing, or using a product or service, used in budgeting and variance analysis.