A firm will have constant profits of $100,000 per year for the next four years, and the interest rate is 6 percent. Assuming these profits are realized at the end of each year, what is the present value of these future profits? 12) A)$346,510.56 B) $400,000.85 C) $325,816.49 D) $376,741.64

$346,510

Explanation:

The profits are constant and so can be considered to be an annuity.

Annuities can be discounted by the formula:

= Annuity * Present value interest factor of annuity, 6%, 4 years

= 100,000 * 3.4651

= $346,510

Answer is therefore A but for some rounding errors.

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the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy