Solved: Present value of the obligation, Finance Basics

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Present value of the obligation

Problem: If an organization has an obligation to pay $5,000 to a supplier two years from now, the present value of the obligation:

is less than $5,000.
is $5,000.
is more than $5,000.
could be calculated using an annuity factor from the present value tables.

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Finance Basics: Present value of the obligation

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Finance Basics: Present value of the obligation

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