Mark, Who Recently Won a Lottery, Tells Sean That He

question 20

Multiple Choice

Mark, who recently won a lottery, tells Sean that he will split his lottery winnings with him if Sean can arrange Mark's interview with his boss. Sean talks to his boss and the meeting is arranged. But when Sean goes to collect half of Mark's lottery winnings, Mark refuses to pay. What is the act of consideration in this scenario?

• A) Mark telling Sean he will split his lottery winnings with him
• B) Sean arranging the interview
• C) Mark going for the interview
• D) Sean asking for half of the lottery winnings

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Definitions:

Net Present Value

A calculation used to assess the profitability of an investment, considering the present value of its cash flows and initial cost.

Discount Rate

In discounted cash flow analysis, the discount rate is the interest rate utilized to ascertain the present value of future cash flows.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows over a period of time.

Salvage Value

The predicted price that an asset will fetch when it is sold at the conclusion of its usable life.