Assume That You Will Receive $2,000 a Year in Years

question 47

Multiple Choice

Assume that you will receive $2,000 a year in Years 1 through 5,$3,000 a year in Years 6 through 8,and $4,000 in Year 9,with all cash flows to be received at the end of the year.If you require a 14 percent rate of return,what is the present value of these cash flows? (Round to the nearest whole dollar)

• A) $9,851
• B) $13,250
• C) $11,714
• D) $15,129
• E) $17,353

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Definitions:

Coercive Power

Power that is based on an agent’s ability to cause an unpleasant experience for a target.

Agent

An individual or entity authorized to act on behalf of another person or organization to create legal relations with third parties.

Unpleasant Experience

An event or situation that causes discomfort, distress, or dissatisfaction, impacting an individual's emotional state.

Coercive Power

The ability of a person to influence others' actions through threats, punishment, or negative reinforcement.