You Have Some Property for Sale and Have Received Two

question 1

Multiple Choice

You have some property for sale and have received two offers.The first offer is for €189,000 today in cash.The second offer is the payment of €100,000 today and an additional €100,000 two years from today.If the applicable discount rate is 8.75%, which offer should you accept and why?

• A)You should accept the €189,000 today because it has the higher net present value.
• B)You should accept the €189,000 today because it has the lower future value.
• C)You should accept the second offer because you will receive €200,000 total.
• D)You should accept the second offer because you will receive an extra €11,000.
• E)You should accept the second offer because it has a present value of €194,555.42.

---

Definitions:

Scanner Technology

The use of devices that convert physical text or images into digital form, often used in retail to read barcodes and manage inventory.

Clickstream Data

Information captured about the series of clicks a user makes while navigating through a website, providing insights into user behavior and preferences online.

Observational Research

A method of data collection involving the direct observation of subjects' actions in their natural environment without interference.

Consumer Behaviours

The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.