If You Are Receiving $2, 000 Per Year Forever, the Present

question 140

Multiple Choice

If you are receiving $2, 000 per year forever, the present value of that income stream when the prevailing interest rate is 7 percent is equal to

• A)$20, 000
• B)$62, 472
• C)$100, 087
• D)$27, 000
• E)$28, 571

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Definitions:

Diagnostic Session

A meeting or series of interactions aimed at identifying and understanding a problem or issue.

Organizational Development

A planned, systemic approach to improving the effectiveness of an organization through changes in processes, culture, and structure.

IBM

International Business Machines Corporation, a multinational technology and consulting company known for its hardware, software, and services.

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Tools used by organizations to gather feedback, opinions, and insights from their workforce on various aspects of the workplace environment and culture.