What Are the Three Factors That Affect the Present Value

question 2

Multiple Choice

What are the three factors that affect the present value of future cash flows?

• A)timing, magnitude, and size
• B)timing, magnitude, and risk
• C)date cash flows are received, date stock was purchased, and taxes
• D)type of cash flows, size of firm, and amount

Recognize the elements of a valid release and accord and satisfaction in contractual agreements.

Identify the conditions under which a promise of employment may be legally enforced.

Understand the concept of a firm offer and its significance in contract law.

Understand the role of self-assessment in personal and professional development.

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Definitions:

Discount

A reduction from the full price or value of a good, service, or financial instrument.

Face Amount

The nominal value stated on the face of a financial instrument, such as a bond, that the issuer promises to pay at maturity.

Prepaid Property Tax

An expense recorded when property taxes are paid in advance before they are due, treated as an asset on the balance sheet.

Property Tax Expense

An expense recorded to reflect the cost of property taxes levied by local governments, often related to real estate owned.