Great Giant Plc Has a Management Contract with Its Newly

question 34

Multiple Choice

Great Giant plc has a management contract with its newly hired chief executive.The contract requires a lump sum payment of £25 million be paid to the chief executive upon the completion of her first ten years of service.The company wants to set aside an equal amount of funds each year to cover this anticipated cash outflow.The company can earn 6.5% on these funds.How much must the company set aside each year for this purpose?

• A)£1,775,042.93
• B)£1,798,346.17
• C)£1,801,033.67
• D)£1,852,617.25
• E)£1,938,018.22

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Definitions:

Utricle

A part of the inner ear's vestibular system, responsible for detecting linear accelerations and head position changes.

Vestibule

An entryway or small room between the outer door and the interior of a building, or an anatomical space within the body, especially within the ear or nose.

Inner Ear

The innermost part of the ear, containing the cochlea, vestibule, and semicircular canals, crucial for hearing and balance.

External Auditory Meatus

The external auditory meatus is the ear canal, a tube running from the outer ear to the middle ear, allowing sound to enter the ear for hearing.