Consider the Following Time Line: If the Current Market

question 31

Multiple Choice

Consider the following time line: If the current market rate of interest is 8%,then the present value of the cash flows on this timeline is closest to:

• A)$1000.
• B)$857.
• C)$860.
• D)$926.

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Definitions:

A Priori Needs

Needs or requirements that are understood or established prior to a project or assessment, based on theoretical deduction rather than empirical evidence.

Actualization Needs

The highest level in Maslow's hierarchy of needs, focusing on realizing personal potential, self-fulfillment, and seeking personal growth.

Drive Theory

A psychological theory that suggests motivation is driven by an individual's desire to fulfill basic physiological needs and reduce internal tensions.

Incentive Theory

A theory in psychology that suggests behavior is motivated by a desire for rewards or incentives.