Mary Will Receive $12,000 Per Year for the Next Ten

question 64

Multiple Choice

Mary will receive $12,000 per year for the next ten years as royalty for her work on a finance book.What is the present value of her royalty income if the opportunity cost is 12 percent? (Round to the nearest whole dollar)

• A) $120,114
• B) $67,803
• C) $65,640
• D) $56,793

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Definitions:

Reality Training

A therapeutic approach aimed at helping individuals recognize and cope with the realities and challenges of daily life effectively.

Highly Structured

Characterized by a clear, essentially fixed and well-organized framework or arrangement; opposite of loosely structured or fluid arrangements.

Synthesis

The process of combining different ideas, beliefs, or objects to form a coherent whole.

Design Disruption

involves innovations or transformations in design that significantly alter the market or the way products are perceived and used.