What Is the Present Value of $100,000 Due in 5-Years

question 46

Multiple Choice

What is the present value of $100,000 due in 5-years and 10-months using the practical method if the interest rate is j₄ = 12%?

• A)$49,685.31
• B)$50,167.50
• C)$50,172.39
• D)$50,177.24

---

Definitions:

Break-Even Point

The point at which total revenues equal total costs, indicating no net loss or gain, and where a business starts to generate profit with any additional sales.

Automated Equipment

Automated equipment consists of machinery and tools that operate with minimal human intervention, often used in manufacturing to increase efficiency and reduce labor costs.

Break-Even Point

The level of sales or production at which a business's revenues equal its expenses, resulting in neither profit nor loss.

Contribution Margin

The difference between sales revenue and variable costs of a product, indicating how much contributes to covering fixed costs and generating profit.