Who wants to be a millionaire?
you just won $1 million dollars in the lottery! they offer you two options for your winnings: a lump sum payment right now, or $100,000 a year over the next 10 years. current 10-year interest rates are at 5%, and the current tax on lottery winnings is 40%.
what is the amount you will receive today with the lump sum option?
which option would you select? how would you present your argument for your decision in a debate?
sorry, you didn’t win the lottery, but here’s a way you can still be a millionaire! starting at age 22, every night you take $5 out of your pocket and put it in a manila envelope (title it “lottery winnings”). at the end of the year, you place the money from the envelope in a stock fund with an average interest rate of 10%.
how much will you have in the account when you retire at age 65?
what would be different if you started this plan later in your life?

Parks corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. the investment would provide cash inflows of $2,000 per year for six years. the working capital would be released for use elsewhere when the project is completed. if the company's discount rate is 10%, the investment's net present value is closest to (ignore income taxes) ?

Define the marginal rate of substitution between two goods (x and y). if a consumer’s preferences are given by u(x, y) = x3/4y1/4, compute the consumer’s marginal rate of substitution as a function of x and y. calculate the mrs if the consumer has chosen to consumer 48 units of x and 16 units of y. show your work. (use the back of the page if necessary.

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e. g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.