The Present Value of $30,000 to Be Received in Two

question 8

Multiple Choice

The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar)

• A) $23,916
• B) $37,632
• C) $23,700
• D) $30,000

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Definitions:

Joint Innovations

Collaborative efforts between companies or individuals to create new products, services, or technologies.

Economic Order Quantity

The optimal quantity of inventory to order that minimizes the total costs associated with ordering and holding inventory.

Carrying Costs

Expenses associated with holding inventory, such as storage, insurance, and opportunity costs, until it is sold or used in production.

Annual Requirements

The total quantity or volume of resources, goods, or services needed by an organization or project over the course of a year.