Given That the Interest Rate Is 10% Per Annum,what Is

question 84

Multiple Choice

Given that the interest rate is 10% per annum,what is the present value of an investment that has 5 equal payments of $50,000 each year for 5 years,starting today?

• A)$250,000
• B)$25,000
• C)$208,493.27
• D)$158,493.27
• E)$ 178,493.27

---

Definitions:

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings of a company.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specific period.

Bond Retirement

The process of paying off bond issuance at maturity or through an early buyback, removing the bonds from circulation.

Par Value

Par Value is the nominal or face value of a stock or bond, as stated by the issuer, and has little relation to its market value.