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Scenario: Susan Discounts Delayed Utility with a Weight Of 12 \frac{1}{2}

Question 95

Multiple Choice

Scenario: Susan discounts delayed utility with a weight of 12 \frac{1}{2} , and Jim discounts delayed utility with a weight of 1/4. Both individuals win gift vouchers, which can be used after a year. Both Susan and Jim estimate the utility of the gift vouchers at 90 utils.
-Refer to the scenario above.What is the present value of the gift voucher to Jim?


A) 12 utils
B) 22.5 utils
C) 90 utils
D) 180 utils

Correct Answer:

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