Quaker State Inc

question 60

Multiple Choice

Quaker State Inc.offers a new employee a lump-sum signing bonus at the date of employment.Alternatively,the employee can take $8,000 at the date of employment plus $20,000 at the end of each of his first three years of service.Assuming the employee's time value of money is 10% annually,what lump-sum at employment date would make him indifferent between the two options?

• A)$23,026.
• B)$57,737.
• C)$62,711.
• D)None of the above is correct.

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Definitions:

React to Friendliness

The manner in which individuals respond to acts or gestures of kindness or amicability.

Freedom of Choice

The ability or right to make one's own decisions without coercion or constraint.

Stage of Life

Specific phases that an individual passes through during their lifetime, marked by distinct physical, psychological, or social characteristics.

Choice Corollary

A principle in George Kelly's personal construct theory, suggesting that individuals choose their processes among those available to them based on anticipated events.