Present Value of 1 Future Value of 1

question 10

Short Answer

Present Value of 1 Future Value of 1 Present Value of an Annuity of 1 Future Value of an Annuity of 1 A company needs to have $200,000 in 4 years, and will create a fund to insure that amount will be available. If it can earn a 7% return compounded annually, how much must the company invest in the fund today to equal the $200,000 at the end of 4 years?

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Definitions:

Transportation-In

Costs associated with bringing inventory items to a company's location, which are added to the cost of inventory.

Invoice Price

The invoice price is the original price that a manufacturer suggests for the sale of a product or service before any discounts or allowances are applied.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxation by government authorities.

LIFO Method

Last-In, First-Out method; an inventory valuation method where the most recent items added to the inventory are assumed to be the first sold.