A Business Is Deciding Whether to Give an End-Of-Year Bonus

question 1

Multiple Choice

A business is deciding whether to give an end-of-year bonus of $5000 each year for the next four years to an employee,in order to increase the number of sales that employee makes.What is the minimum extra profit the employee must generate this year for the bonus to be worthwhile over the next four years,if the discount rate is 7%?

• A)$12,263
• B)$14,480
• C)$16,936
• D)$20,000
• E)$18,600

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Definitions:

Type of Communication

Refers to the various manners or methods in which information is exchanged between individuals or groups, such as oral, written, non-verbal, and digital communication.

Critical Thinking

The ability to objectively analyze and evaluate an issue or information to form a reasoned judgment, often involving skepticism and questioning.

Problem Solving

The process of identifying a challenge or obstacle and applying knowledge and reasoning to find solutions or ways to overcome it.

Possible Decisions

Refers to the range or variety of options or choices available in a given situation.