Carl Is Unsure of Which Rate He Should Use as a Discount

question 23

Multiple Choice

Carl is unsure of which rate he should use as a discount rate for project evaluations, 7 percent or 10 percent.If he can invest $30,000 in a project that will return $40,000 after-tax in four years, what is the result?

• A)He will always reject the project
• B)He will reject the project if he uses 10%
• C)He will reject the project if he uses 7%
• D)He will reject neither project

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Definitions:

Throwaway Question

A question asked by researchers during an interview that is intended to be easy for participants to answer, often used to warm up the respondent or to discard.

Essential Question

A broad, fundamental question that guides the research and focuses on the core issues being examined.

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A type of interview that allows for a mix of predetermined questions and the freedom for interviewers to explore topics in more depth as needed.

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A structured interviewing format where each interviewee is asked the same questions in the same order to ensure consistency across interviews.