The Table Above Shows the Interest Rates Available from Investing

question 20

Multiple Choice

The table above shows the interest rates available from investing in risk-free U.S. Treasury securities with different investment terms. What is the present value (PV) of cash flows from an investment that yields $6000 at the end of each year for the next four years?

• A) $18,111
• B) $27,167
• C) $31,695
• D) $22,639

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Definitions:

Management Information System

An organized approach to collecting, storing, and processing data to provide useful information for decision-making.

Enterprise-wide Network

A comprehensive digital framework that connects all aspects of an organization, facilitating communication and data exchange within the entire enterprise.

Extranet

A private network that uses Internet protocols, network connectivity, and possibly the public telecommunication system to securely share part of an organization's information or operations with suppliers, vendors, partners, customers, or other businesses.

Intranet

A private network accessible only to an organization's staff, often used to share company information and computing resources among employees.