You Collect Model Cars

question 18

Multiple Choice

You collect model cars. One particular model increases in value at a rate of 5% per year. Today, the model is worth $29.50. How much additional money can you make if you wait ten years to sell the model rather than selling it five years from now?

• A) $9.98
• B) $10.40
• C) $10.86
• D) $11.03
• E) $11.24

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Definitions:

Escalation of Commitment

Escalation of commitment involves continuing to invest in a decision despite evidence of its ineffectiveness, often due to sunk costs or pride.

Project Termination

The formal conclusion of a project, either because it has been completed, halted, or deemed no longer viable.

Creative Process

A series of steps or stages involved in generating innovative ideas or solutions, often including preparation, incubation, illumination, and verification.

Incubation

The process in problem-solving where an individual sets the problem aside for a while, allowing the subconscious to work on it.