What Is the Value Today of Receiving Five Annual Payments

question 74

Multiple Choice

What is the value today of receiving five annual payments of $500,000,beginning one year from now,assuming an 11% discount rate?

• A)$2,500,000.
• B)$2,225,000.
• C)$1,847,950.
• D)$2,115,270.

---

Definitions:

Conversion

The act of wrongfully taking or retaining a person’s personal property and placing it in the service of another.

Wrongful Interference

A legal term referring to the act of intentionally interfering with contractual or business relationships.

Business Relationship

A connection between two or more parties engaged in commercial transactions or activities, based on contractual, statutory, or recognized ethical obligations.

Intentionally Interfered

Deliberate actions taken to obstruct or meddle with someone's rights, activities, or legal interests.