At an Interest Rate of 10%, Which of the Following $\begin{array}{llcc}& \text { Year 1 } & \text { Year 2 } & \text { Year 3 }\end{array}$

question 95

Multiple Choice

At an interest rate of 10%, which of the following cash flows should you prefer?
$\begin{array}{llcc}& \text { Year 1 } & \text { Year 2 } & \text { Year 3 }\end{array}$

A. $\begin{array}{llcc}& 500 &\quad\quad 300 &\quad 100\end{array}$

B. $\begin{array}{llcc}& 100 &\quad\quad 300 & \quad500 \end{array}$

C. $\begin{array}{llcc}& 300 &\quad\quad 300 &\quad 300\end{array}$

D. $\text { Any of the above as they all add up to } \$ 900$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Consumer-solicited Media

Media content that is directly requested or influenced by consumers, contrasting with traditional media where content creation decisions are often made exclusively by producers or publishers.

Heuristic

A general problem-solving approach or strategy that isn't guaranteed to be optimal but is practical and sufficient for reaching a near-term goal.

Bounded Rationality

A concept in decision-making theory that suggests individuals make decisions based on the limited information available to them and within the constraints of their mental capacity.

Rule of Reciprocity

A social norm that suggests individuals respond to positive actions with other positive actions, fostering mutual benefit.