In Order to Receive $12,000 at the End of Three

question 11

Multiple Choice

In order to receive $12,000 at the end of three years and $10,000 at the end of five years, how much must be invested now if you can earn 14% rate of return? (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) $12,978
• B) $8,100
• C) $13,290
• D) $32,054

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Definitions:

Transformational Leadership Theory

A leadership approach highlighting the importance of inspiring and empowering followers to achieve extraordinary outcomes through visionary leadership.

GLOBE

An acronym for Global Leadership and Organizational Behavior Effectiveness, a research program studying cross-cultural leadership behaviors.

Self-Protective Leadership

A leadership style focused on ensuring the safety, security, and welfare of the leader and the group, often prioritizing risk avoidance and security measures.

Conflict Inducing

Actions or situations that provoke disagreement or hostilities between individuals or groups, potentially disrupting harmony and cooperation.