Suppose You Have a Winning Lottery Ticket and You Are

question 29

Multiple Choice

Suppose you have a winning lottery ticket and you are given the option of accepting $3,000,000 three years from now or taking the present value of the $5,000,000 now.The sponsor of the prize uses a 6% discount rate.If you elect to receive the present value of the prize now, the amount you will receive is

• A)$2,518,860.
• B)$2,591,520.
• C)$2,670,000.
• D)$3,000,000.

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Definitions:

Sales Response Function

A model that explains how sales volume changes in response to various marketing activities, including changes in product features, pricing, promotion, and distribution.

S-shaped Curve

A curve that depicts a scenario where growth starts slowly, accelerates, and then slows down again, often used in biology, product life cycles, and technology adoption.

Supply Chain Management

The management of the flow of goods and services from the initial production of a product through to its delivery to the end consumer.

Customer Relationship Management

A strategic approach that uses data analysis and customer interactions to improve business relationships and customer satisfaction.