You Have Some Property for Sale and Have Received Two

question 326

Multiple Choice

You have some property for sale and have received two offers. The first offer is for $98,000 in cash today. The second offer is the payment of $50,000 today and an additional $60,000 two years from today. The applicable discount rate is 11%. You should accept the _____ offer as it is worth _____ more today.

• A) first; $412.85
• B) first; $587.49
• C) second; $349.16
• D) second; $491.80
• E) second; $697.35

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, influenced by factors like needs, desires, and ambitions.

Management By Objectives

Is a process of joint goal setting between a supervisor and a subordinate.

Goal-oriented Rewards

Incentives and rewards designed to motivate individuals or teams to achieve specific targets or objectives.

Process Theory

A theory that focuses on understanding how various factors influence the mechanisms through which individuals and groups achieve goals.