Designs Now Is Opening a Showcase Office to Display and Sell

question 59

Multiple Choice

Designs Now is opening a showcase office to display and sell its computer-designed poster art. Designs expects cash flows to be $120,000 in the first year, $180,000 in the second year, $240,000 in the third year. If Designs uses 11 percent as its discount rate, what is the present value of the cash flows?

• A) $429,720
• B) $457,620
• C) $456,000
• D) $424,820

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Definitions:

Wealth

An abundance of valuable financial assets or physical possessions which contribute to an individual's or entity's net worth.

Income Inequality

The unequal distribution of individual or household income across various participants in an economy, leading to disparities in wealth and economic opportunities.

Source

The origin from which something comes, such as information or material for academic or production purposes.

In-Kind Benefits

Benefits given in the form of goods or services rather than money, often used in social welfare programs.