If You Knew That an Investment Was Going to Pay

question 84

Multiple Choice

If you knew that an investment was going to pay you $1,188,757 in 20 years,and you knew that the annual interest rate over that time would be 2 percent,you could calculate the present value to be:

• A) $1,000,000.
• B) $1,500,000.
• C) $905,000.
• D) $800,000.

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Definitions:

Indirect Costs

Expenses that are not directly attributable to a specific product, project, or activity, often including administrative and overhead costs.

Management Process

A series of actions and procedures undertaken by managers to plan, organize, lead, and control business operations.

Controlling

The management function that involves monitoring and evaluating performance to ensure that organizational objectives are being achieved.

Operating Results

The outcome of a company's primary business activities, indicating its operating income or loss over a specific accounting period.