A Report from the Marketing Department Indicates That a New

question 104

Multiple Choice

A report from the marketing department indicates that a new product will generate the following revenue stream: $62,500 in the first year,$89,400 in year two,$136,200 in year three,$128,300 in year four,and $112,000 in year five.If your firm's discount rate is 11% and the cash flows are received at the end of each year,what is the present value of this cash flow stream?

• A) $379,435.35
• B) $421,173.24
• C) $476,036.04
• D) $528,400.00

---

Definitions:

Mechanical Society

A term from Émile Durkheim describing traditional societies where social cohesion and integration come from the homogeneity of individuals’ beliefs, values, and practices.

Organic Society

A concept in sociology describing a type of society that functions like a biological organism, with various segments working together towards the functionality and stability of the whole.

Dynamic Density

An concept in sociology that refers to the amount of interaction between individuals within a given space, suggesting that increased interaction leads to social change.

Division of Labor

The allocation of different tasks and responsibilities to different people or groups, often leading to specializations in certain skills or professions.