Assume That You Will Receive $2,000 a Year in Years

question 81

Multiple Choice

Assume that you will receive $2,000 a year in Years 1 through 5,$3,000 a year in Years 6 through 8,and $4,000 in Year 9,with all cash flows to be received at the end of the year.If you require a 14 percent rate of return,what is the present value of these cash flows?

• A) $9,851
• B) $13,250
• C) $11,714
• D) $15,129
• E) $17,353

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Definitions:

Achievement

Accomplishing a goal or reaching a target after effort, skill, or courage has been applied.

Vroom's Expectancy Theory

A theory of motivation that suggests an individual's behavior is determined by their expected results or outcomes of actions.

Likelihood

The chance or probability of a specific event occurring within a given context or set of circumstances.

Results

Outcomes or outputs arising from actions, processes, or events, often measured to assess performance or effectiveness.