Suppose You Will Receive $800 in Two Years

question 184

Multiple Choice

Suppose you will receive $800 in two years.If the interest rate is 5 percent,then the present value of this future payment is

• A)$725.62.It would be higher if the interest rate were higher.
• B)$727.28.It would be higher if the interest rate were higher.
• C)$725.62.It would be lower if the interest rate were higher.
• D)$727.28.It would be lower if the interest rate were higher.

Understand the concept and relevance of avoidable and sunk costs in decision-making.

Differentiate between relevant and irrelevant costs for decision making.

Comprehend the role of opportunity costs in decisions.

Evaluate the relevance of variable and fixed costs in specific decision contexts.

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Definitions:

Negative Message

A negative message conveys unwelcome or unfavorable information, requiring careful phrasing and consideration of the recipient's feelings to minimize impact.

Providing Alternatives

Offering different options or solutions to a problem or situation for consideration.

Subject Line

The title or headline of an email, designed to summarize the content or purpose and encourage opening.

Negative Message

Communication that conveys refusals, denials, or unfavorable news in a diplomatic way.