With an Interest Rate of 8 Percent,the Present Value of $100

question 59

Multiple Choice

With an interest rate of 8 percent,the present value of $100 received one year from now is approximately

• A) $93.
• B) $96.
• C) $100.
• D) $108.

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Definitions:

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including expenses, purchases, and investments.

Merchandise Purchases

The buying of goods for resale, specifically those goods bought by a retailer to be sold to customers.

Operating Expenses

Ongoing costs for running a product, business, or system that do not include cost of goods sold but can include items like salaries and utilities.

Direct Materials Purchases Budget

A financial plan estimating the raw materials a company needs to purchase to meet its production goals.