Zane Has Received a Prize Which Entitles Him to Receive

question 23

Multiple Choice

Zane has received a prize which entitles him to receive annual payments of $10,000 for the next 10 years. Which of the following is to be referred to in order to calculate the total value of the prize today?

• A)Present Value of $1
• B)Present Value of an Annuity of $1
• C)Future Value of $1
• D)Future Value of an Annuity of $1

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Definitions:

Receiving

The process of accepting delivery of goods or services from a supplier or vendor.

Related Selling Activities

Marketing and sales actions directly associated with closing a sale, including advertising, promotions, and direct sales efforts.

Ordering Merchandise

The process of securing inventory for sale by placing orders with manufacturers or wholesalers.

Making a Sale

The process of transferring goods or services to a customer for a price, generating revenue for a business.