If an organization has an obligation to pay $5,000 to a supplier two years from now, the present value of the obligation: a) is less than $5,000. b) is $5,000. c) is more than $5,000. d) could be calculated using an annuity factor from the present value tables.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
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If an organization has an obligation to pay $5,000
to a supplier two years from now, the present value
of the obligation:
a) is less than $5,000.
b) is $5,000.
c) is more than $5,000.
d) could be calculated using an annuity factor from
the present value tables.
Transcribed Image Text:If an organization has an obligation to pay $5,000 to a supplier two years from now, the present value of the obligation: a) is less than $5,000. b) is $5,000. c) is more than $5,000. d) could be calculated using an annuity factor from the present value tables.
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