What Annual Payment Must You Receive in Order to Earn

question 46

Multiple Choice

What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $1, 250?

• A) $77.19
• B) $81.25
• C) $85.31
• D) $89.58
• E) $94.06

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Definitions:

Outsourcing

The business practice of hiring a third party to perform services, handle operations or provide goods that are either cost-prohibitive or not within the company's core competencies.

Employment At Will

A legal doctrine in some jurisdictions that allows an employer to terminate employees at any time for any reason, except an illegal one, or for no reason without incurring legal liability.

Due-Process Policy

Regulations that guarantee company procedures will be conducted fairly, especially concerning disciplinary actions against employees.

Internal Recruitment Sources

These are the channels within an organization used to fill job vacancies from the existing workforce.