Designs Now Is Opening a Showcase Office to Display and Sell

question 59

Multiple Choice

Designs Now is opening a showcase office to display and sell its computer-designed poster art. Designs expects cash flows to be $120,000 in the first year, $180,000 in the second year, $240,000 in the third year. If Designs uses 11 percent as its discount rate, what is the present value of the cash flows?

• A) $429,720
• B) $457,620
• C) $456,000
• D) $424,820

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Definitions:

Overly Supervision

An excessive level of oversight and control by managers or supervisors over the work and decisions of their subordinates.

Budget Expansion

An increase in allocated funds or resources for a project, department, or entire organization.

Socialized Charismatic Power

A form of leadership in which the leader's influence derives from their ethical behavior, altruism, and personal actions that benefit others.

Collective Benefit

Collective benefit refers to advantages or gains that accrue to a group, community, or society as a whole, rather than only to individual members.