What Is the Eight-Year Present Value Annuity Factor at a Discount

question 22

Multiple Choice

What is the eight-year present value annuity factor at a discount rate of 11%?

• A)5.7122
• B)11.8594
• C)5.1461
• D)6.9158

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Definitions:

Quick Ratio

A financial metric indicating a company's ability to meet short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

A financial metric used to measure a company's ability to pay its short-term liabilities with its short-term assets.

Debt Ratio

A financial ratio that compares the amount of debt a company has to its total assets.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a given period, indicating the efficiency of inventory management.