What Is the Present Value of $1 Received Five Years

question 54

Multiple Choice

What is the present value of $1 received five years from now (rounded to two decimal places) if the discount rate is 12%?

• A) $1.76.
• B) $0.57.
• C) $1.00.
• D) $1.60.
• E) $0.89.

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Definitions:

Hierarchy of Authority

A system within organizations where power and responsibilities are ranked from the top (highest authority) to the bottom (lowest authority).

Mechanistic Design

A structure in organizations characterized by strict procedures, rigid divisions of labor, and centralized decision making.

Formal Coordination

A process where organizational activities are aligned and managed through explicit and official policies, procedures, and structures.

Specific Tasks

Distinct activities or assignments that are designed to achieve a particular objective within a set timeframe.