You Have Just Landed Your First Job

question 150

Multiple Choice

You have just landed your first job. Part of the offer includes a $4,000 new employee bonus which is intended to cover your relocation costs. You have determined that you can move yourself for $1,000. Thus, you have decided to open an Individual Retirement Account with the remaining $3,000. How much more will this investment be worth 35 years from now if you can earn an average rate of return of 9.5% rather than 9%?

• A) $10,639.32
• B) $10,676.16
• C) $11,207.91
• D) $11,341.41
• E) $11,454.54

---

Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

CCA Rate

Capital Cost Allowance Rate, which is the percentage rate at which businesses in Canada can claim depreciation on tangible capital assets for tax purposes.

Operating Cash Flow

Measures the cash generated from a company's normal business operations, indicating whether a company can maintain or grow its operations without new financing.

Net Working Capital

The difference between a company's current assets (like cash, inventory, receivables) and its current liabilities (like payables), indicating short-term financial health and operational efficiency.