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 percent,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:

Outcome Research

The study of the results or outcomes of interventions or treatments, aimed at determining their effectiveness or impact.

Active Placebo

A control substance or treatment that is designed to mimic the side effects of the experimental treatment without containing the active therapeutic agent, used in clinical trials to improve the blinding process.

Allegiance Effect

The phenomenon where the belief and enthusiasm of the therapist for the therapy they provide can influence the outcome of treatment.

Psychotherapy Research

The field of study that examines the efficacy, processes, and mechanisms of psychotherapy treatments in facilitating mental health and well-being.