The Present Value of an Investment of $1,000 to Be

question 37

True/False

The present value of an investment of $1,000 to be received in three years at a discount rate of 10 percent is $1,331.

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Definitions:

Inventory

The total amount of goods or materials held by a company for the purpose of resale or production.

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.

Accounts Receivable Turnover

A financial ratio indicating how quickly a company collects on outstanding accounts receivable, calculated by dividing total net sales by the average accounts receivable during a period.