Find the Present Value of an Income Stream Which Has

question 20

Multiple Choice

Find the present value of an income stream which has a negative flow of $100 per year for 3 years, a positive flow o $200 in the 4th year, and a positive flow of $300 per year in Years 5 through 8.The appropriate discount rate is 4 percent for each of the first 3 years and 5 percent for each of the later years.Thus, a cash flow accruing in Year 8 should be discounted at 5 percent for some years and 4 percent in other years.All payments occur at year-end.

• A)$528.21
• B)$1,329.00
• C)$792.49
• D)$1,046.41
• E)$875.18

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Definitions:

Span Of Control

The number of subordinates that a manager or supervisor can effectively oversee, control, or manage directly.

Coordination

The organized arrangement of efforts and resources among different persons or groups to achieve a common goal.

Supervision

The process of overseeing and managing employees to ensure they are working effectively towards organizational goals.

Flatter Structures

Organizational structures characterized by fewer hierarchical levels, encouraging better communication and faster decision-making processes.