Question
Assume you will receive $7,000 in 3 years. If the interest rates increase, then: Cannot be determined without additional information. The present value of that
Assume you will receive $7,000 in 3 years. If the interest rates increase, then:
Cannot be determined without additional information. | ||
The present value of that amount will fall, because it will be discounted at a higher rate. | ||
none of the proposed choices | ||
The present value of that amount will rise, because it will be discounted at a lower rate. | ||
The present value will remain unchanged. |
You are planning to get a graduate degree. You will need $50,000 in 3 years from now to start your studies. Suppose you can earn 5% on your deposits. How much do you need to deposit today to have the required amount for the graduate studies?
$28,587 | ||
$34,723 | ||
none of the proposed choices | ||
$50,000 | ||
$43,192 |
ABC Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200, and cost of goods sold of $3,500. How long does it take ABC to both sell its inventory and then collect the payment on the sale?
210 days | ||
110 days | ||
131 days | ||
125 days | ||
145 days |
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