A Single Amount of $6,400 Is to Be Received in 4

question 6

Multiple Choice

A single amount of $6,400 is to be received in 4 years.If the single amount is discounted at 8% for 4 periods,the present value is ________.The present value of $1 for 4 periods at 8% is 0.735.The present value of an ordinary annuity of $1 for 4 periods at 8% is 3.312.(Round your final answer to the nearest dollar. )

• A)$4,704
• B)$5,376
• C)$6,400
• D)$21,197

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Definitions:

Gasoline

A volatile, flammable liquid derived from petroleum, used primarily as fuel in spark-ignited internal combustion engines.

Negative Externality

A cost that is suffered by a third party due to an economic transaction or activity.

Production

The act of merging diverse physical and non-physical inputs (including blueprints and skills) to produce goods for consumption.

Gasoline

A liquid fuel derived from petroleum, primarily used to power internal combustion engines in vehicles.