The Table Above Shows the Interest Rates Available from Investing

question 14

Multiple Choice

The table above shows the interest rates available from investing in risk-free Government of Canada securities with different investment terms.If an investment offers a risk-free cash flow of $100,000 in ten years' time,what is the present value (PV) of that cash flow?

• A)$80,051
• B)$78,320
• C)$73,512
• D)$70,892
• E)$95,102

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Definitions:

Accounting Policy

Own sets of beliefs, bases, manners, dictates, and systems placed by a corporation in the making and publicizing of its financial declarations.

High Leverage

A situation where a company or individual has a significant level of debt compared to equity, potentially increasing financial risk but also possible returns.

Political Costs

Expenses and impacts a company incurs as a result of political decision-making, regulations, or actions that affect its operations and profitability.