Present Value of 1 Future Value of 1

question 63

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 needs to have $150,000 in 5 years, and will create a fund to insure that the $150,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $150,000 at the end of 5 years?

• A)$141,000
• B)$112,095
• C)$100,000
• D)$111,615
• E)$105,000

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Definitions:

Open Systems

A concept in organizational theory and systems theory that views organizations as entities that interact with their environment, adapting and evolving as a result.

Contingency

The possibility that future events may occur, often dependent on certain conditions or situations, which can influence planning and decision-making.

Open Systems

An approach that views organizations as entities that interact with their environment, adapting and changing in response to external factors.

Intellectual Capital

The intangible value of an organization's knowledge, skills, innovations, and processes, contributing to its competitive advantage.