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:

Stomach Decompression

A medical procedure that involves the removal of stomach contents to relieve pressure or bloating.

Laxative Use

The consumption or usage of substances that loosen stools and increase bowel movements to alleviate constipation.

Dietary Fiber

Indigestible parts of plant foods that aid in maintaining a healthy digestive system, contributing to bowel regularity and health.

Activity Level

A measure of the physical and sometimes psychological engagement in actions or tasks, often assessed in health, fitness, and rehabilitation contexts to determine functional capacity or improve wellbeing.