You Are Paid to Teach Graduate-Level Classes for the University

question 41

Multiple Choice

You are paid to teach graduate-level classes for the university and want to determine how much money the university makes from your graduate-level classes.Based on historical data,you estimate that your graduate classes for the next six years will generate an average annual revenue of $99,850.If you discount these cash flows at an annual rate of 7.30%,what is the present value of the expected cash flows?

• A)$895,133.52
• B)$483,644.36
• C)$471,562.95
• D)$423,786.85

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Definitions:

Communal Sharing

A relational model theorizing how people in a group share resources and responsibilities without keeping track of individual contributions or distributions.

Entitativity

The perception or degree to which a group of entities is considered to be a coherent, single unit.

Common Bond

The shared interest, purpose, or sympathy that unites individuals or groups, fostering a sense of connection and solidarity.

Common Identity

The sense of belonging to a group where members identify with a shared identity beyond their individual differences.