If $10,000 Is Invested in a Certain Business at the Start

question 47

Multiple Choice

If $10,000 is invested in a certain business at the start of the year,the investor will receive $3000 at the end of each of the next four years.What is the present value of this business opportunity if the interest rate is 7% per year?

• A)$148.53
• B)$161.63
• C)$172.45
• D)$178.88

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Definitions:

Cost Variance

The difference between the expected cost of a project or production process and the actual cost incurred.

Labour Efficiency Variance

A measure used in cost accounting to evaluate the difference between the actual hours worked and the standard hours expected to produce a certain level of output.

Production Manager

The person responsible for overseeing the production process and ensuring that manufacturing runs smoothly and efficiently.

Management By Exception

A management system in which standards are set for various activities, with actual results compared to these standards. Significant deviations from standards are flagged as exceptions.