What Is the Value Today of $3,600 Received at the End

question 70

Multiple Choice

What is the value today of $3,600 received at the end of each year for 7 years if the first payment is paid at the end of year 3 and the discount rate is 12 percent?

• A) $11,694.21
• B) $12,484.57
• C) $13,097.52
• D) $15,089.23
• E) $16,429.52

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Definitions:

Standard Hours Allowed

The amount of work time allowed for the completion of a task, against which actual hours are compared for performance analysis.

Direct Labor-Hours

Total time directly invested in the creation of a product or the provision of a service.

Variable Overhead Efficiency Variance

A measure used to evaluate the efficiency of variable overhead resources used in production relative to the standard consumption expected.

Particular Product

A specific good or service offered by a company, distinct from other offerings within its product line.