What Is the Present Value (PV)of $100,000 Received Five Years

question 42

Multiple Choice

What is the present value (PV) of $100,000 received five years from now,assuming the interest rate is 8% per year?

• A)$60,000.00
• B)$68,058.32
• C)$73,502.99
• D)$82,609.42

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Definitions:

Sustained Competitive Advantage

The ability of a company to maintain its competitive advantage over its competitors over a long period, thereby securing its market position and profitability.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, including innovation, brand, cost structure, distribution network, customer service, and product quality.

Top Executives

Individuals who hold the highest-level management positions within an organization, responsible for developing and implementing policies and strategic goals.

Hierarchical Approach

An organizational strategy where decision-making and power are concentrated at higher levels of management, promoting a clear chain of command.