An annuity contract will pay you $4,000 a year (end of year) for the next three years. Or, you can choose to receive $12,610 at the end of the third. Assuming that you can earn 8% on investments, you should

A)

choose to receive the $4,000 annuity payments.
B)

choose to receive the $12,610 payment.
C)

flip a coin to make the choice; each is equally attractive.
D)

flip a coin to make the choice; each is equally unattractive.


A

Business

You might also like to view...

Which of the following is a strength of the behavioral approach?

A. the research supports how leader behaviors affect performance outcomes B. the research found the high-high style to be the most effective C. he wide range of research on leadership behaviors gives it credibility D. the research found a universal style that is effective in all situations

Business

______ is the overall perception of what is fair in an organization.

A. Organizational commitment B. Perceived organizational support C. Expectancy theory D. Organizational justice

Business

Cost of Goods Sold appears on a multi-step income statement but not on a single-step income statement

Indicate whether the statement is true or false

Business

Unilateral conduct can not result in a violation of antitrust law.

Answer the following statement true (T) or false (F)

Business