A Car Dealership Offers a Car for $14,000, with Up

question 85

Multiple Choice

A car dealership offers a car for $14,000, with up to one year to pay for the car. If the interest rate is 5%, what is the net present value (NPV) of this offer to buyers who elect not to pay for the car for one year?

• A) $667
• B) $1333
• C) $13,333
• D) $14,000

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Definitions:

Functional Chimneys

describe siloed departments within an organization that operate independently and with limited interaction, potentially leading to inefficiencies and communication barriers.

Communication

The process of sharing information, ideas, or feelings between people through speaking, writing, or other mediums to achieve mutual understanding.

Collaborative Problem Solving

A method where two or more individuals or groups work together through idea sharing and open communication to achieve a mutual solution to a problem.

Functional Structure

An organizational design where the company is divided into departments based on special functions such as marketing, finance, and production.