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The Present Value of $475 Received 3 Years in the Future

question 12

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The present value of $475 received 3 years in the future would be calculated as which of the following when the interest rate is 6 percent?


Definitions:

Operating Income

Operating income is the profit realized from a business's core operations, excluding deductions of interest and taxes.

Variable Cost

Costs that change in proportion with the level of output or production activity.

Fixed Costs

Overheads such as rent, salaries, and insurance that do not fluctuate with the level of goods produced or sold.

Variable Costs

Charges that vary in relation to the volume of output or services provided by a firm.

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