Before You Can Calculate the Present Value of a Cash

question 60

Multiple Choice

Before you can calculate the present value of a cash flow,you must

• A)Identify the amount and timing of each cash flow
• B)Determine the appropriate discount rate
• C)Both identify the amount and timing of each cash flow and determine the appropriate discount rate
• D)Neither identify the amount and timing of each cash flow nor determine the appropriate discount rate

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Definitions:

Repair Shop

A place or business where mechanical or electronic items are fixed or maintained.

Merchant

An individual or business entity involved in the trade of goods or services, especially one dealing with the sale of goods.

Uniform Commercial Code

A comprehensive set of laws and regulations that govern commercial transactions in the United States, intended to harmonize laws across states.

Ordinary Buyers

Refers to typical consumers in the market who purchase goods or services for personal use.