Joseph Has Just Accepted a Job as a Stockbroker

question 52

Multiple Choice

Joseph has just accepted a job as a stockbroker.He estimates his gross pay each year for the next three years is $35,000 in year 1,$21,000 in year 2,and $32,000 in year 3.What is the present value of these cash flows if they are discounted at 4%?

• A)$79,452.30
• B)$80,294.50
• C)$81,517.10
• D)$88,000

---

Definitions:

Nash Equilibria

Situations in a game in which each player has chosen a strategy and no player can benefit by changing strategies while the other players keep theirs unchanged.

Plant Capacity

Refers to the maximum output or production level that a facility can achieve under normal conditions.

Time-Discounted Values

The process of determining the current worth of a future sum of money or stream of income, taking into account the time value of money.

Profit Streams

Continuous streams of income generated from various business activities or investments over time.