You Have a Sub-Contracting Job with a Local Manufacturing Firm

question 14

Multiple Choice

You have a sub-contracting job with a local manufacturing firm. Your agreement calls for annual payments of $50,000 for the next five years. At a discount rate of 12%, what is this job worth to you today?

• A) $180,238.81
• B) $201,867.47
• C) $210,618.19
• D) $223,162.50
• E) $224,267.10

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Definitions:

Decision Making

The process of selecting a course of action from multiple alternatives to achieve a desired outcome.

Preferred Course

Typically refers to a course or subject that an individual chooses to study, based on interest, goals, or requirements for a career or academic path.

Implementing Solution

The process of putting into action or executing a plan or solution to address a specific problem or challenge.

Behavioural Decision Model

Describes decision‐making with limited information and bounded rationality.