Recall Application 2, "Options for a Lottery Winner," to Answer

question 66

Multiple Choice

Recall Application 2, "Options for a Lottery Winner," to answer the following questions:
-According to the application, the best way to determine whether a lottery winner should take the lumpsum value or the annual payments is by calculating

• A) the present value of the annual payments and comparing it with the lumpsum value.
• B) the present value of the lumpsum and comparing it with the annual payments.
• C) the present value of the annual payments and comparing it to zero.
• D) the present value of the lumpsum and comparing it to zero.

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Definitions:

Security

The condition of being protected from or not exposed to danger or risk; also refers to measures taken for safety.

Motivation Factors

Elements that influence an individual's level of motivation, including intrinsic rewards, recognition, and personal goals.

Herzberg's Two-Factor Theory

A motivational theory that divides factors in the workplace into two categories: hygiene factors, which if inadequate cause dissatisfaction, and motivators, which can lead to satisfaction.

Expectancy Theory

A motivational theory suggesting that people are motivated to perform behaviors if they believe that such behaviors will lead to desired outcomes.