The Proper Equation to Use in Calculating the Present Discounted

question 6

Multiple Choice

The proper equation to use in calculating the present discounted value of a sum F received in two years and again in four years is

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Definitions:

Operating Expenses

Costs associated with running the day-to-day operations of a business, such as rent, utilities, and payroll, but excluding costs related to production.

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Denominator

The bottom number in a fraction that shows into how many equal parts the whole is divided.

Numerator

The number above the division line in a fraction. The numerator is also known as the dividend.