What Is the Present Value (PV)of $50 000 Received 20

question 32

Multiple Choice

What is the present value (PV) of $50 000 received 20 years from now, assuming the interest rate is 4% per year?

• A)$22 819.35
• B)$40 000.00
• C)$10 000.00
• D)$5 242.88

Understand the concept of contribution margin.

Analyze the impact of cost structure on gross margin and contribution margin.

Determine the effect of inventory changes on net operating income under different costing methods.

Understand how direct labor as a variable cost affects product costing and decision making.

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Definitions:

Adult Life

A phase of human development characterized by full physical maturation, increased independence, and typically involving roles such as employment and family life.

South America

A continent located in the Western Hemisphere, mostly in the Southern Hemisphere, comprising 12 countries and known for its diverse geographical features and cultures.

School

An institution designed for the teaching of students under the direction of teachers.

Craft

Skill in doing or making something, especially with the hands, often implies an artistic or traditional nature of the work.