You Can Receive $10,000 Today or $3,000 Per Year for the Next

question 16

Multiple Choice

You can receive $10,000 today or $3,000 per year for the next five years.If the required rate of return is 10%,what option should be selected? (The present value of an ordinary annuity at 10% for five periods is 3.7908.The present value of one at 10% for five periods is 0.6209.)

• A)Receive $10,000 today.
• B)Receive $3,000 per year for the next five years.
• C)The results are the same for both options.
• D)Neither option is desirable.

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Definitions:

Causal Attribution

The process of determining the underlying cause or reason behind an event or behavior, attributing it to internal dispositions or external situations.

Deliberately Knocked

Intentionally causing something to be struck or come into forceful contact, often used metaphorically to describe the act of bringing attention to or criticizing something.

Repressed Memories

memories that have been unconsciously blocked due to being associated with a high level of stress or trauma.

Susceptible To Suggestion

Describes a state where an individual is easily influenced by others' ideas, recommendations, or instructions.