A Company Wants to Have $20,000 at the End of a Ten-Year

question 16

Multiple Choice

A company wants to have $20,000 at the end of a ten-year period by investing a single sum now. How much needs to be invested in order to have the desired sum in ten years, if the money can be invested at 12%? (Ignore income taxes.) Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)

• A) $3,254.68
• B) $3,539.82
• C) $6,440
• D) $7,720

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Definitions:

Old Paradigm

A set of practices and beliefs that have been widely accepted in the past but may no longer be relevant or effective in the current context.

Robert E. Kelley

An academic and author known for his contributions to the understanding of followership and the dynamics of leadership.

Effective Followers

Individuals who actively support and contribute to their leader’s vision while demonstrating critical thinking and initiative.