You Have Heard About a New Light Bulb That Is

question 3

Multiple Choice

You have heard about a new light bulb that is costly to purchase but uses little electricity and thus allows you to save money on your utility bill. Suppose the new light bulb costs $10 today but next year your electricity bill will be $50 lower. If the interest rate is 10%, what is the net present value of buying this new light bulb and using it for one year?

• A)$40
• B)-$45.45
• C)$55
• D)$35.45

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Definitions:

Brief Psychodynamic Psychotherapy

A form of therapy focusing on unconscious processes and current issues. It's shorter and more focused than traditional psychodynamic psychotherapy.

Adler's Individual Psychology

A psychological theory and therapy method developed by Alfred Adler, focusing on the uniqueness of each individual and the importance of societal factors in shaping personality.

Ego Analysis

A psychoanalytic practice focusing on understanding and analyzing the functions of the ego, including defence mechanisms and the handling of the demands of the id, super-ego, and external world.

Rational-Emotive Therapy

A form of therapy developed by Albert Ellis that is concerned with how people interpret events and how these interpretations influence their responses. These interpretations, or mediating processes, are cognitive and result from the person’s belief systems.