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:

Evolutionary Perspective

A theoretical approach that seeks to understand the physical and psychological adaptations of humans through the lens of evolution and natural selection.

Androgynous

Describes individuals with a blend of characteristics traditionally considered masculine and feminine, in terms of appearance, behavior, or identity.

Syndicated Sports

Pre-packaged sports broadcasting content distributed or licensed across multiple television stations or media platforms, often beyond geographical boundaries.

Androgynous

Androgynous describes a person or characteristic that blends or lacks distinction between traditional male or female gender roles or expressions.