Assuming the Interest Rate Is 6 Percent, Which of the Following

question 23

Multiple Choice

Assuming the interest rate is 6 percent, which of the following has the greatest present value?

• A)$300 paid in two years
• B)$150 paid in one year plus $140 paid in two years
• C)$100 paid today plus $100 paid in one year plus $100 paid in two years
• D)$285 today

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Definitions:

Line Workers

Employees who are directly involved in the production process of a factory or in the operation of a service company.

Board of Directors

A group of individuals elected by shareholders to oversee and govern a corporation's management and major decisions.

Stockholders

Individuals or institutions that own shares of stock in a corporation, giving them ownership interests and rights to dividends.

Productivity Efficiency

measures how effectively economic inputs are converted into outputs, often assessed to improve organizational workflows, resource usage, and overall performance.