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:

Charitable Activities

Actions or efforts aimed at providing aid, support, or donations to help individuals, communities, or causes in need.

Strategic Greening

A type of environmental marketing activity that integrates and coordinates all of the firm’s activities on environmental issues across every functional area.

Limited Changes

Minor or restrained modifications made to a product, service, or policy, often aimed at improvements without overhauling the existing structure.

Consumerism

A movement, made up of citizens and government entities, that focuses on protecting consumers and promoting their interests.