A Lottery Winner Can Take $6 Million Now or Be

question 13

Multiple Choice

A lottery winner can take $6 million now or be paid $600,000 at the end of each of the next 16 years.The winner calculates the internal rate of return (IRR) of taking the money at the end of each year and,estimating that the discount rate across this period will be 6%,decides to take the money at the end of each year.Was her decision correct?

• A)Yes,because it agrees with the Net Present Value rule.
• B)Yes,because it agrees with the payback rule.
• C)Yes,because it agrees with both the Net Present Value rule and the payback rule.
• D)No,because it disagrees with the Net Present Value rule.

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Definitions:

Functionalists Approach

A sociological perspective that views society as a complex system composed of parts working together to promote stability and social order through fulfilling necessary functions.

Sexual Needs

are the psychological or physical requirements related to obtaining or expressing sexual intimacy, pleasure, and health.

Sexual Scripts

Cultural expectations about appropriate sexuality that are learned through social interaction.

Cultural Expectations

The shared norms and values that dictate acceptable behavior and practices within a specific culture or society.