If the Interest Rate Is 10 Percent and Cash Flows

question 88

Multiple Choice

If the interest rate is 10 percent and cash flows are $1,000 at the end of year one and $2,000 at the end of year two,then the present value of these cash flows is:

• A) $2,562.
• B) $3,200.
• C) $439.
• D) $3,000.

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Definitions:

Critical-Incident Technique

A performance assessment technique that keeps a log of employees’ effective and ineffective job behaviours.

Recency Bias

The overemphasis of the most recent behaviours when evaluating individuals’ performance.

Evaluations

The process of assessing or judging the performance, qualities, or value of someone or something.

Behaviourally Anchored Rating Scale

A scale that uses specific descriptions of actual behaviours to rate various levels of performance.