Scenario 21-2 Aliyah Has Recently Graduated from College with a Degree in Degree

question 54

Multiple Choice

Scenario 21-2
Aliyah has recently graduated from college with a degree in journalism and economics. She has decided to pursue a career as a freelance journalist writing for business newspapers and magazines. Aliyah is typically awake for 119 hours each week (she sleeps an average of seven hours each day) . For each hour Aliyah spends writing, she can earn $75. Aliyah is such a good writer that she can get paid for as many hours of writing as she chooses to work.
-Refer to Scenario 21-2. If Aliyah decides to spend 60 hours a week playing volleyball on the beach and the rest of her time writing, how much income will she have available to spend on consumption goods?

• A)$4,500
• B)$8,925
• C)$4,425
• D)$750

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Definitions:

Quantitative Techniques

Mathematical or statistical methods applied for analyzing numerical data, often used in decision-making processes.

Cash Payback Technique

Identifies the time period required to recover the cost of a capital investment from the net annual cash flow produced by the investment.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Payback Method

A method used in capital budgeting to estimate the time required to recoup the initial investment from its cash flows.