You Are Presented with Two Cash Flow Options: Option Near,a

question 6

Multiple Choice

You are presented with two cash flow options: Option Near,a $5,000 annuity for three years,with the first cash flow one year from today,or Option Far,a $5,000 annuity for six years with the first cash flow ten years from today.Assuming an interest rate of 7.0%,which set of cash flows has a greater present value?

• A)Option Near has a greater PV of $13,121.58 vs.Option Far PV of $12,963.41.
• B)Option Far has a greater PV of $13,121.58 vs.Option Near PV of $12,963.41.
• C)Option Far has a greater PV of $30,000 vs.Option Near PV of $15,000.
• D)Option Near and Option Far have the same PV of $12,963.41.

Grasp the structure and nature of payroll accounts including expenses, liabilities, and assets related to payroll.

Calculate payroll expenses and liabilities through provided case scenarios.

Distinguish between different taxes and expenses recorded in payroll accounting, including federal, state, and unemployment taxes.

Understand the process and importance of obtaining an Employer Identification Number (EIN) for new businesses.

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