JK Industries Just Signed a Sales Contract with a New

question 41

Multiple Choice

JK Industries just signed a sales contract with a new customer.JK will receive annual payments in the amount of $62,000,$108,000,$135,000,and $150,000 at the end of Years 1 to 4,respectively.What is this contract worth at the end of Year 4 if the firm earns 4.3 percent on its savings?

• A)$497,425.35
• B)$402,311.19
• C)$466,118.00
• D)$485,271.13
• E)$478,639.54

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Definitions:

Ileocecal Sphincter

A valve situated at the junction of the ileum (last part of the small intestine) and the cecum (first part of the large intestine) that controls the flow of digested material.

Lower Esophageal Sphincter

A muscular ring that controls the flow between the esophagus and stomach, preventing reflux.

Anal Sphincter

A muscle that surrounds the anus and controls the release of feces from the digestive tract.

Lesser Omentum

A double layer of peritoneum that extends from the liver to the lesser curvature of the stomach and the beginning of the duodenum.