Meadow Brook Manor Would Like to Buy Some Additional Land

question 128

Multiple Choice

Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $23.6 million. The CEO of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for the entire construction project. Management has decided to save $1.2 million a quarter for this purpose. The firm earns 6.25 percent, compounded quarterly, on the funds it saves. How long does the company have to wait before expanding its operations?

• A)4.09 years
• B)4.32 years
• C)4.46 years
• D)4.82 years
• E)4.91 years

---

Definitions:

Equitably Distributed

A state in which resources, opportunities, and benefits are allocated fairly among all members of a community or society.

Identification

The process of associating oneself with particular groups, ideals, or characteristics, contributing to one's sense of identity.

Organizational Beliefs

The shared values, principles, and norms that characterize the culture and behaviors of an organization, influencing its decision-making and practices.

Positional Power

The authority and influence that comes from the position one holds within an organization's hierarchy.