Given a present value factor of 0.7921, assuming a 6% discount rate, the present value of $16,000 payment received in 4 years is
A)$3,168.
B)$12,674.
C)$20,199.
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

We can use the formula:

Present Value = Payment / (1 + r)^n

where r is the discount rate and n is the number of years.

Substituting the given values, we get:

Present Value = $16,000 / (1 + 0.06)^4
Present Value = $12,674

Therefore, the answer is B, $12,674.

Given a Present Value Factor of 0