If the Desired Rate of Return on a Project Is

question 85

Multiple Choice

If the desired rate of return on a project is 10%, determine the present value of $40,000 to be received in four years using the following partial table of present value of $1 at compound interest. ? $$\begin{array} { c c c c } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 0.890 & 0.826 & 0.797 \\3 & 0.840 & 0.751 & 0.712 \\4 & 0.792 & 0.683 & 0.636\end{array}$$

• A) $27,320
• B) $25,440
• C) $31,680
• D) $30,040

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Definitions:

Unionized Bottling Plant

A unionized bottling plant refers to a bottling facility where the workers are represented by a labor union, often influencing wages, working conditions, and negotiations.

Employment Of Labor

The engagement of individuals to perform tasks for wages or salary in various sectors and industries within an economy.

Input Markets

Markets where factors of production (such as labor, materials, and capital) are bought and sold.

Equilibrium

A state in a market where supply equals demand, and there is no external pressure to change the price or quantity.