Lora Corporation Will Receive $10,000 a Year at the End

question 51

Multiple Choice

Lora Corporation 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:

Checks and Balances

A system in government where different branches are empowered to prevent actions by other branches and are induced to share power, maintaining a balance.

Civil Liberties

Individual rights protected by law from unjust governmental or other interference.

Three-Fifths Compromise

A compromise reached during the 1787 United States Constitutional Convention that counted three out of every five slaves as a person for the purposes of taxation and representation in Congress.

Slave Trade

The historical trade in humans for the purpose of forced labor, including the Transatlantic slave trade where Africans were transported to the Americas.