Zach Was Working as an Intern for an Investment Company

question 203

Multiple Choice

Zach was working as an intern for an investment company. His office was in the World Trade Center in New York City and his first day on the job was September 11, 2001. Zach survived the terrorist attacks physically unharmed but is now experiencing flashbacks, digestive problems, and he can't seem to have successful personal relationships. Zach's current problems may be a result of

• A)microstressors
• B)catastrophic events
• C)macrostressors
• D)major negative events

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Definitions:

Net Present Value

A financial metric that calculates the present value of all future cash flows associated with an investment, minus the initial investment cost.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Unequal Lives

A term used in capital budgeting to describe projects or investments with different durations.

Replacement Chain Method

A capital budgeting technique that compares different investment projects with unequal lifespans by calculating their equivalent annual cost.