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

question 22

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 Y 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 val cash flows?

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

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Definitions:

Operant Conditioning

The learning of voluntary behavior through the effects of pleasant and unpleasant consequences to responses.

Unpleasant Stimulus

Any object, event, or situation that is undesirable or discomforting to an individual, often leading to avoidance behavior.

Modeling

The process of learning behavior by observing and imitating others, as proposed in Bandura's social learning theory.

Extinction

The disappearance or weakening of a learned response following the removal or absence of the unconditioned stimulus (in classical conditioning) or the removal of a reinforcer (in operant conditioning).