Henriette offers financial counseling and management on a fee-only basis. She has found that different customers are willing to pay different rates for her services. This shows that her pricing decisions should depend primarily on:

The correct answer is letter "C": how different customers perceive the value of her services.

Explanation:

Different consumers could value goods or services differently depending on what those products represent for them. The higher the utility of the good or service, the more individuals will be willing to pay for it. This situation could affect or benefit providers being this the reason why most of them have a fixed price on what they offer.

Thus, the reason why some of Henriette's customers pay her different rates is that some of them find her services more valuable than others.

Initial investment Frank = $6,500
Initial investment Lynn = $3,500

Time of earning for Lynn in years = x
Time of earning for Frank in years = 0.5 + x
Payback rate = $6,000 per year

Lynn's time for payback:
3500 = 6000x
x = 7 months

Frank's earnings = 6000(x + 0.5)
= 6000(7/12  + 0.5)
= 6500

Thus, the answer is C as both of them will recover their investments on the same date.