Find the Present Value of a Payment Stream of $100

question 20

Multiple Choice

Find the present value of a payment stream of $100 per year for the first fifteen years and $200 per year for the next five years, given a 12% discount rate.

• A)$813
• B)$1,402
• C)$953
• D)$887
• E)$712

Calculate operating expenses as a percentage of selling price.

Determine the breakeven price for retail items.

Calculate profit or loss realized from the sale of an item based on cost, selling price, and operating expenses.

Understand volume discounts and their impact on cost and pricing strategies.

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Definitions:

Free Access Rule

A policy or principle in behavior analysis allowing unrestricted access to a reinforcing stimulus to ensure its effectiveness as a reinforcer.

DRO Increasing-Interval Schedules

A behavior modification technique where reinforcement of any behavior other than the target behavior is delivered at increasing intervals of time.

Differential Reinforcement

A process of reinforcing specific behaviors while withholding reinforcement for other, less desirable behaviors.

DRL

Differential Reinforcement of Low Rates, a behavioral technique used to decrease the frequency of a behavior but not necessarily eliminate it.