What Is the Present Value of a $200 Payment Made

question 115

Multiple Choice

What is the present value of a $200 payment made in 3 years when the discount rate is 8 percent?

• A)$150.00
• B)$158.77
• C)$251.94
• D)$515.42

---

Definitions:

Target Capital Structure

The mix of debt, equity, and other financing sources a company aims to hold to fund its operations and growth, optimized for its financial strategy and risk tolerance.

Debt-equity Mix

The ratio of a company's total debt to its equity, indicating the balance between debt and equity financing.