What Is the Present Value (PV)of $80,000 Received Ten Years

question 7

Multiple Choice

What is the present value (PV) of $80,000 received ten years from now,assuming the interest rate is 5% per year?

• A)$38,422.76
• B)$40,000.00
• C)$49,113.06
• D)$76,000.00

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Definitions:

Unit Variable Cost

The cost associated with producing one additional unit of a product, including labor and material but excluding fixed costs.

Unit Selling Price

The price at which an individual unit of product is sold to customers.

Percentage

A way of expressing a number as a fraction of 100, denoted using the symbol "%".

Unit Variable Cost

The cost attributed to each unit produced, varying with the level of output.