Matt, a Star Basketball Player, Is Looking to Join a New

question 264

Multiple Choice

Matt, a star basketball player, is looking to join a new NBA team. The Bulls are offering him $24 million for one year. The Heat is offering him $10 million this year and $7.0 million in each of the next
Two years. The market interest rate is 5 percent. What is the present value of the offer from The
Heat in millions (rounded to the nearest one hundred thousand dollars) ?

• A) $22.5 million
• B) $23.0 million
• C) $24.0 million
• D) $25.2 million

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Definitions:

Antibiotic Overuse

The excessive use of antibiotics which can lead to antibiotic resistance, diminishing the effectiveness of these drugs against bacterial infections.

External Cost

A cost incurred by a third party who did not agree to the action that caused the cost, often associated with negative environmental impacts or health hazards.

Antibiotic-Resistant

Referring to bacteria that have evolved to survive exposure to antibiotics that were previously effective in killing them or inhibiting their growth.

Government Policy

Actions and decisions made by the government to achieve certain goals or address specific issues within a country.