Brooks Company Will Receive $10,000 a Year at the End

question 59

Multiple Choice

Brooks Company will receive $10,000 a year at the end of each of the next five years.Using a discount rate of 14%,the present value of the receipts can be stated as ________.

• A) PV = $10,000 (Ordinary Annuity FV factor, i = 14%, n = 5)
• B) PV = $10,000 (PV factor, i = 14%, n = 5)
• C) PV = $10,000 (Ordinary Annuity PV factor, i = 14%, n = 5)
• D) PV = $10,000 (FV factor, i = 14%, n = 5)

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Definitions:

Septimius Severus

A Roman Emperor who ruled from AD 193 to 211, known for his military campaigns, administrative reforms, and the construction of notable buildings in Rome.

Triumphal Arch

In Roman architecture, a freestanding arch commemorating an important event, such as a military victory or the opening of a new road.

Antoninus Pius

A Roman Emperor from 138 to 161 AD, known for his peaceful reign and the prosperity of the Roman Empire during his time.

Emperor

The sovereign ruler of an empire, commanding great authority and power.