Present and Future Value Tables of $1 at 9% Are

question 49

Multiple Choice

Present and future value tables of $1 at 9% are presented below.

-Mustard's Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is:

• A) $10,699.
• B) $11,468.
• C) $12,100.
• D) $14,000.

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Definitions:

Fashionable Merchandise

Products that are designed and sold according to the latest trends and styles, appealing to consumers looking for current and stylish items.

Pleasant Environment

An environment that is enjoyable or soothing to be in due to its aesthetics, atmosphere, or conditions.

Full-line Discount Store

Retail establishments that offer a wide range of products at reduced prices, typically in a large-store format.

Service Retailer

A firm that primarily sells services rather than merchandise.