What Is the Present Value of $1 Received Five Years

question 147

Multiple Choice

What is the present value of $1 received five years from now (rounded to two decimal places) if the discount rate is 12%?

• A)$1.76.
• B)$0.57.
• C)$1.00.
• D)$1.60.

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Definitions:

Operating Cost

Expenses associated with the ongoing operations of a business, such as rent, utilities, and payroll.

Useful Life

The expected period during which an asset is deemed to be functional and economically viable for its intended purpose, important for depreciation calculations.

Kilometres Per Litre

A measure of fuel efficiency in vehicles, indicating how many kilometers a vehicle can travel on one litre of fuel.