The Net Cash Flows of Advantage Leasing for the Next

question 51

Multiple Choice

The net cash flows of Advantage Leasing for the next 3 years are $42,000,$49,000 and $64,000 respectively,after which the growth rate will be a constant 2% with a WACC of 8%. What is the present value of the terminal value?

• A) 51,822
• B) 55,967
• C) 59,259
• D) 60,444
• E) None of these.

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Definitions:

Observational Learning

A form of learning that occurs through observing the behavior of others and the consequences of that behavior.

Reinforcement

In operant conditioning, any event that strengthens, or increases the frequency of, a desired behavior.

Strengthen Behaviour

The process of increasing the likelihood that a behavior will be repeated through reinforcement or reward.

Learning Theorists

Scholars and psychologists who study and develop theories about how people acquire knowledge, skills, attitudes, and behaviors.