After Getting Her Degree in Marketing and Working for 5

question 14

Multiple Choice

After getting her degree in marketing and working for 5 years for a large department store,Sally started her own specialty shop in a regional mall.Sally's current lease calls for payments of $1,000 at the end of each month for the next 60 months.Now the landlord offers Sally a new 5-year lease which calls for zero rent for 6 months,then rental payments of $1,050 at the end of each month for the next 54 months.Sally's required rate of return is 11 percent.By what absolute dollar amount would accepting the new lease change Sally's theoretical net worth? (Hint: The required rate of return per month is 11%/12 = 0.9166667%. )

• A) $2,810.09
• B) $3,243.24
• C) $3,803.06
• D) $4,299.87
• E) $4,681.76

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Definitions:

Work-Related Problems

Issues or difficulties encountered in the professional environment that affect performance, relationships, or job satisfaction.

Critical Thinking

The ability to engage in reflective and independent thinking, allowing an individual to analyze and evaluate an issue or situation to form a judgment.

Stress Hormones

Biochemicals released in the body in response to stress, which prepare the body to face a threat or flee to safety, such as cortisol and adrenaline.

Creativity

The ability to generate new and original ideas, solutions, or artistic expressions, which challenge conventional boundaries.