If an Organization Has an Obligation to Pay $25,000 to a Supplier

Multiple Choice

If an organization has an obligation to pay $25,000 to a supplier two years from now, the present value of the obligation:

A) is less than $25,000.
B) is $25,000.
C) is more than $25,000.
D) could be calculated using an annuity factor from the present value tables.