If the Appropriate Present Worth Factor Is

question 8

Multiple Choice

If the appropriate present worth factor is .90909 and it is applied to an income stream of $35,000, the discounted value would be

• A) $18,333
• B) $31,818
• C) $38,500
• D) $66,818

---

Definitions:

Alcan

Alcan was a Canadian mining company and manufacturer of aluminum products, which became part of Rio Tinto Alcan after its acquisition.

Systematic Risk

The inherent risk associated with the entire financial system or market, which cannot be eliminated through diversification.

Risk-Averse

A description of an investor or investment strategy that prioritizes the minimization of risk over potential returns.

Total Risk

Total risk encompasses all the various types of risk a business or investment might face, including both systematic and unsystematic risks.