You Have Just Won a Magazine Sweepstakes and Have a Choice

question 67

Multiple Choice

You have just won a magazine sweepstakes and have a choice of three alternatives. You can get $100,000 now, or $10,000 per year in perpetuity, or $50,000 now and $150,000 at the end of 10 years. If the appropriate discount rate is 12%, which option should you choose?

• A) $100,000 now
• B) $10,000 perpetuity
• C) $50,000 now and $150,000 in 10 years

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Definitions:

Self Competency

The ability to understand and effectively manage one's own abilities and emotions in various situations.

Indra Nooyi

Former CEO of PepsiCo and a prominent business executive known for her leadership and influence in the global business landscape.

Allegations

Claims or accusations made without proof, typically asserting wrongdoing or misconduct.

Communication Competency

The ability to effectively convey, receive, and interpret messages in verbal and nonverbal communication.