The Net Present Value of $1,000 Received in the Future

question 5

Multiple Choice

The net present value of $1,000 received in the future would

• A) decline if the $1,000 were received sooner.
• B) increase if the delivery date for the $1,000 were set farther into the future.
• C) decrease if the interest rate fell.
• D) decrease if the interest rate rose.

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Definitions:

Organizational Psychologists

Professionals who apply psychological principles and research methods to the workplace to solve problems and improve the quality of work life.

Invest Proportion

The ratio of capital allocated to different investments or assets in an attempt to optimize returns.

Remedy Deficiencies

To correct or make up for shortcomings or deficiencies.

Ineffective Managers

Individuals in managerial roles who fail to generate desired outcomes, often due to lack of skills, poor communication, or inability to adapt to change.