Scenario: Susan Discounts Delayed Utility with a Weight Of $\frac{1}{2}$

question 3

Multiple Choice

Scenario: Susan discounts delayed utility with a weight of $\frac{1}{2}$ , and Jim discounts delayed utility with a weight of 1/4. Both individuals win gift vouchers, which can be used after a year. Both Susan and Jim estimate the utility of the gift vouchers at 90 utils.
-Refer to the scenario above.What is the present value of the gift voucher to Jim?

• A) 12 utils
• B) 22.5 utils
• C) 90 utils
• D) 180 utils

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Definitions:

External Company

A company that is outside the group of companies to which a particular company belongs, often considered in the context of external audits or partnerships.

Payroll Checks

Checks issued by an employer to pay employees for their services, reflecting gross pay, deductions, and net pay.

Net Pay

The total income of an employee following the subtraction of all deductions, including taxes and retirement fund contributions.

Gross Earnings

The total amount of money earned by an individual or a company before any deductions such as taxes, benefits, or other expenses.