What Is the Approximate Maximum Amount That a Firm Should

question 74

Multiple Choice

What is the approximate maximum amount that a firm should consider paying for a project that will return $15,000 annually for 5 years if the opportunity cost is 10 percent?

• A)$33,520
• B)$56,862
• C)$62,540
• D)$75,000

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Definitions:

Referent Power

Refers to the ability of a leader to influence others because they respect, admire, or like the leader.

Individualistic

Characterizing a culture or person that values independence, self-reliance, and personal achievement over group goals.

Empowerment

The process of providing individuals or groups with the resources, authority, and confidence to make decisions and take actions.

Coercive Power

The power or ability to force someone to do something against their will, often using threats or punishment.