You Just Signed a Consulting Contract That Will Pay You

question 27

Multiple Choice

You just signed a consulting contract that will pay you $38,000,$52,000,and $85,000 annually at the end of the next three years,respectively.What is the present value of these cash flows given a 10.5 percent discount rate?

• A)$139,975
• B)$148,307
• C)$154,880
• D)$157,131
• E)$162,910

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Definitions:

Automated Phone Systems

Computerized telephone systems used by businesses to direct calls to the appropriate department or provide information without a human operator.

Robotic Assembly Line

Automated manufacturing processes in which robots and machinery assemble parts and products with minimal human intervention.

Self-Checkout Lines

Automated systems in retail environments that allow customers to scan, bag, and pay for their purchases without human assistance.

Gini Index Scores

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).