If the Present Value of $480 to Be Paid at the End

question 2

Multiple Choice

If the present value of $480 to be paid at the end of one year is $400, what is the one-year discount factor?

• A)0.8333
• B)1.20
• C)0.20
• D)1.00

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Definitions:

Success Secrets

Strategies or insights considered instrumental in achieving personal or professional success.

Incentives

Have two pieces: a performance evaluation metric, like sales, profit, or investment return, and a reward scheme that rewards better performance, like a bonus, the promise of a promotion, or a commission. Performance evaluation metrics can be objective or subjective.

Supplier Power

The influence suppliers have over the market or customer base, often due to lack of competition, affecting prices, quality, and availability.

Sourcing Inputs

Involves the process of finding and obtaining the necessary resources, materials, or components required to manufacture a product or provide a service.