The Bluebird Company Has a $12,000 Liability It Must Pay

question 111

Multiple Choice

The Bluebird Company has a $12,000 liability it must pay three years from today.The company is opening a savings account so that the entire amount will be available when this debt needs to be paid.The plan is to make an initial deposit today and then deposit an additional $3,500 a year for the next three years,starting one year from today.The account pays a 3% rate of return.How much does the Bluebird Company need to deposit today?

• A)$867.74
• B)$1,081.56
• C)$1,108.09
• D)$1,276.34
• E)$1,642.28

---

Definitions:

Negotiation

The process by which parties with differing interests and objectives discuss an issue in an attempt to reach a mutually acceptable agreement.

Labor Unions

Organizations that represent the collective interests of workers in negotiations with employers over wages, benefits, and working conditions.

Bargaining Power

The capacity of one party to dominate the terms of negotiation due to their position, resources, or strategic advantage over the others.

Layoffs

The act of temporarily or permanently dismissing employees from their jobs, often due to economic downturns, restructuring, or changes in business strategy.