Present Value of 1 Future Value of 1

question 37

Multiple Choice

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 A company expects to invest $5,000 today at 12% annual interest and plans to receive $15,529 at the end of the investment period. How many years will elapse before the company accumulates the $15,529?

• A)0.322 years
• B)3.1058 years
• C)5 years
• D)8 years
• E)10 years

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Definitions:

Activity-based Management

A management approach focusing on managing activities as a way to improve customer value and profit by improving the efficiency and effectiveness of those activities.

Waste

Any unusable materials or substances involved in a process which are produced as a by-product and often require disposal.

Processing Time

The duration required to complete a particular process or activity, often used in manufacturing and operational analysis.

Unit-level Activities

Activities in cost accounting that vary with the number of units produced, such as operating machinery for each unit.