What Is the Value in Year 20 of a $1,000

question 35

Multiple Choice

What is the value in year 20 of a $1,000 cash flow made in year 8 if interest rates are 15 percent in years "6 through 13" and increase to 18 percent in the remaining years?

• A) $5,779.57
• B) $5,912.42
• C) $6,005.71
• D) $6,407.13

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Definitions:

LIFO Perpetual

A method of inventory valuation where the last items acquired are the first to be used or sold, continuously updated to reflect remaining inventory.

Average Cost Periodic

A costing method where the cost of goods sold and ending inventory are valued at the average cost of all goods available for sale during the period.

Periodic Inventory System

An inventory management method where stock levels are updated at specific intervals through physical counts.

Average Cost Methods

An inventory costing method where the cost of goods sold and ending inventory are calculated based on the average cost of all units available for sale.