Answer:
Option E. 8 percent interest over a period of 10 years
Explanation:
The formula for Present Value Impact Factor is
PVIF = a / (1 + r)^ n
Where
a represents the future amount to be received
r stands for the discount interest rate
and n signifies the number of years or any time period
If the denominator grows larger, the Present Value Interest Factor will decrease, implying that the highest denominator occurs at 8 percent interest for 10 years. Therefore, option E is correct.
Answer: Selling Price = $9803.92
Explanation:
Details:
A Treasury bill has a return of 2% every 6 months.
Time duration = 6 months
Return rate = 2% per 6 months
Selling Price of the Treasury bill = 
Selling Price = 
The expected selling price for a 6-month Treasury bill is $9803.92.
Answer: Which option below illustrates a decision related to managing working capital? B. choosing between paying cash immediately for a purchase or utilizing the supplier’s offered credit.
Explanation: Working capital deals with short-term assets and liabilities. Deciding on the payment method for a purchase involves considering the overall financial objective connected to the transaction. This approach ensures the payment choice aligns optimally with the company’s financial strategy.
