The Present Value of $100 Received at the End of Year

question 85

Multiple Choice

The present value of $100 received at the end of year 1, $200 received at the end of year 2, and $300 received at the end of year 3, assuming an opportunity cost of 13 percent, is ________.

• A) $ 453
• B) $ 416
• C) $1,181
• D) $ 500

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Definitions:

Acquisition

An acquisition involves one company purchasing another company or its assets, often to expand its operations or enter new markets.

Trade Name

A commercial name under which a business operates and is known to its customers.

Legal Costs

Expenses incurred by an entity related to legal services, including attorney fees, court fees, and settlements.

Internally Developed Goodwill

The unrecognized benefit or extra value generated from a business's internal operations and initiatives, which is not formally recorded on the balance sheet.