Bill Jones Has Just Won the State Lottery and Has

question 35

Multiple Choice

Bill Jones has just won the state lottery and has the following three payout options for after-tax prize money: 1.$170,000 per year at the end of each of the next six years
2.$312,000 (lump sum) now
3.$508,000 (lump sum) six years from now
The annual discount rate is 9%.Compute the present value of the first option.(Round your answer to the nearest whole dollar. )
Present value of an ordinary annuity of $1:
$$\begin{array} { | r | r | r | r | } \hline & 8 \% & 9 \% & 10 \% \\\hline 1 & 0.926 & 0.917 & 0.909 \\\hline 2 & 1.783 & 1.759 & 1.736 \\\hline 3 & 2.577 & 2.531 & 2.487 \\\hline 4 & 3.312 & 3.240 & 3.170 \\\hline 5 & 3.993 & 3.890 & 3.791 \\\hline 6 & 4.623 & 4.486 & 4.355 \\\hline 7 & 5.206 & 5.033 & 4.868 \\\hline\end{array}$$ Present value of $1:
$$\begin{array} { | l | r | r | r | } \hline & 8 \% & 9 \% & 10 \% \\\hline 1 & 0.926 & 0.917 & 0.909 \\\hline 2 & 0.857 & 0.842 & 0.826 \\\hline 3 & 0.794 & 0.772 & 0.751 \\\hline 4 & 0.735 & 0.708 & 0.683 \\\hline 5 & 0.681 & 0.650 & 0.621 \\\hline 6 & 0.630 & 0.596 & 0.564 \\\hline 7 & 0.583 & 0.547 & 0.513 \\\hline\end{array}$$

• A)$850,000
• B)$762,620
• C)$482,000
• D)$457,251

Gain familiarity with the Situational Leadership Model and its application.

Explore legacy models of leadership and their characteristics.

Comprehend the range and dimensions of leadership styles within the Vroom-Jago model.

Interpret how leadership models build upon and extend behavioral leadership theories.

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Definitions:

Controlling

The process of establishing standards, comparing actual performance against these standards, and taking corrective action to ensure objectives are met.

Planned Goals

Objectives or outcomes that an organization intends to achieve within a specific timeframe.

Manufacturing Costs

Costs directly associated with manufacturing products, encompassing raw materials, workforce expenses, and manufacturing facility costs.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and represent a significant portion of the production cost.