Use the Following Information to Answer the Question(s)below

question 38

Multiple Choice

Use the following information to answer the question(s) below.
Frank Dewey Esquire from the firm of Dewey,Cheatum,and Howe,has been offered an upfront retainer of $30,000 to provide legal services over the next 12 months to Taggart Transcontinental.In return for this upfront payment,Taggart Transcontinental would have access to 8 hours of legal services from Frank for each of the next 12 months.Frank's normal billable rate is $250 per hour for legal services.
-Assuming that Dewey's cost of capital is 12% EAR,then the NPV of his retainer offer is closest to:

• A)-$7500.
• B)-$7400.
• C)$6000.
• D)$7400.

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Definitions:

Agents Of Erosion

Natural forces like water, wind, ice, and gravity that physically or chemically break down and carry away Earth's surface material.

Ice

A solid state of water that occurs when it freezes, typically at or below 0°C (32°F).

Salinization

The process of increasing salt content in soil, often due to improper irrigation practices, leading to reduced soil fertility and negatively impacting agriculture.

Accumulate

To gather or collect a substance, objects, or information gradually over time.