The Present Value of $1 Million to Be Received in the Future

question 332

Multiple Choice

The present value of $1 million to be received in the future will

• A) increase if the interest rate rises.
• B) increase if the payment is received at a more distant time in the future.
• C) be greater than $1 million.
• D) increase if the interest rate were to fall from 8 percent to 4 percent.

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Definitions:

Lewin's Approach

A model developed by Kurt Lewin that suggests behavior is a result of the individual and their environment and involves three stages: unfreezing, changing, and refreezing.

Diagnosing

The process of identifying a problem or disease based on signs, symptoms, and possibly further testing.

Deploying

The process of distributing and positioning resources or personnel for effective use or action in a specific context.

Organizational Culture

A system of shared beliefs, values, customs, behaviors, and artifacts that the members of an organization use to cope with their world and with one another.