To the Nearest Dollar, What Is the Value Today of an Investment

question 48

Multiple Choice

To the nearest dollar, what is the value today of an investment that pays $10,000 in five years, assuming an annual opportunity cost of 6%?

• A) $7,473
• B) $11,592
• C) $8,626
• D) $7,130
• E) None of the above

---

Definitions:

Liabilities

Financial obligations or debts that a company owes to external parties or entities.

Assets

Assets are resources owned or controlled by a business, expected to bring future economic benefits.

Total Assets

The sum of all resources owned by a company, valued at cost, which are expected to provide future economic benefits.