A Cash Flow Received in Two Years Is Expected to Be

question 59

Multiple Choice

A cash flow received in two years is expected to be $10,816 in nominal terms. If the real rate of interest is 2% and the inflation rate is 4%, what is the real cash flow for year-2?

• A) $11,236
• B) $10,816
• C) $10,000
• D) $9,246

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Definitions:

Wrongful Dismissal

The unjust termination of an employee's contract of employment in violation of legal or contractual requirements.

Employment-Related Harassment

Behavior in the workplace that creates a hostile environment for employees through discrimination, intimidation, or offensive behaviors.

Mandatory Retirement

Forced retirement from employment, generally at 65 years.

Human Rights

Fundamental rights and freedoms that every person is entitled to regardless of nationality, sex, national or ethnic origin, race, religion, language, or other status.