On January 1, 2009, You Are Considering Making an Investment

question 38

Multiple Choice

On January 1, 2009, you are considering making an investment that will pay three annual payments of $10,000. The first payment is not expected until December 31, 2011. You are eager to earn 3%. What is the present value of the investment on January 1, 2009?

• A)$26,662.
• B)$27,462.
• C)$28,286.
• D)$29,135.PVA = $10,000 x ( 4.57971* - 1.91347**) = $26,662 *PVA of $1: n=5; i=3% **PVA of $1: n=2; i=3%

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Definitions:

Hygiene Factor

Factors related to job dissatisfaction that, when absent, can cause workers to become unhappy, such as salary, company policies, and working conditions.

Job Context

The environment, conditions, and all the external and internal factors that influence the nature of a job, including its requirements and the employee's performance.

Need For Achievement

A psychological trait that drives an individual to pursue and attain challenging objectives and standards of excellence.

McClelland's Theory

A motivation theory which posits that people are motivated by three primary needs: achievement, affiliation, and power.