The Present Value of $60,000 to Be Received in One

question 3

Multiple Choice

The present value of $60,000 to be received in one year, at 6% compounded annually, is _____ (rounded to nearest dollar) . Use the following table, if needed.
$$\begin{array}{l}\text { Present value of } \$ 1 \text { at Compound Interest }\\\begin{array} { l l l l l l } \text { Periods } & 5 \% & 6 \% & 7 \% & 10 \% & 12 \% \\1 & 0.95238 & 0.94340 & 0.93458 & 0.90909 & 0.89286 \\2 & 0.90703 & 0.89000 & 0.87344 & 0.82645 & 0.79719 \\3 & 0.86384 & 0.83962 & 0.81630 & 0.75132 & 0.71178 \\4 & 0.82270 & 0.79209 & 0.76290 & 0.68301 & 0.63552 \\5 & 0.78353 & 0.74726 & 0.71299 & 0.62092 & 0.56743 \\6 & 0.74622 & 0.70496 & 0.66634 & 0.56447 & 0.50663 \\7 & 0.71068 & 0.66506 & 0.62275 & 0.51316 & 0.45235 \\8 & 0.67684 & 0.62741 & 0.58201 & 0.46651 & 0.40388 \\9 & 0.64461 & 0.59190 & 0.54393 & 0.42410 & 0.36061 \\10 & 0.61391 & 0.55840 & 0.50835 & 0.38554 & 0.32197\end{array}\end{array}$$

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Definitions:

Joint Venture

An agreement where multiple parties decide to combine their assets to achieve a particular goal.

Global Market Entry

Strategies and methodologies employed by businesses to enter and establish a presence in international markets.

Ownership

The legal right or state of having complete control and possession over property, assets, or an entity.

Direct Investment

The purchase of substantial stock in a foreign firm or the control of assets in another country, often to establish a business presence.