Using a discount rate of 14%,the present value of a $10,000 benefit received 5 years from now is $5,500.49.

Name: Using a discount rate of 14%,the present value of a $10,000 benefit received 5 years from now is $5,500.49.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the present value of a $10,000 benefit received 5 years from now is $5,500.49, it means that the benefit is being discounted at a rate higher than 50% per year, which is not realistic. Therefore, this statement is false.

Using a Discount Rate of 14%,the Present Value of a $10,000