Using Higher Discount Rates

question 119

Multiple Choice

Using higher discount rates,:

• A) accelerated amortization is more valuable than straight line amortization.
• B) straight-line amortization is more valuable than accelerated amortization.
• C) amortization policy makes no difference.
• D) later year amortization has a higher net present value.

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Definitions:

Multiple-Act Criterion

Term for a general behavioural index based on an average or combination of several specific behaviours.

Subjective Norm

The perceived social pressure to perform or not perform a particular behavior, based on the expectations of others.

Specific Measures

Detailed and precise metrics or criteria used for evaluating or assessing particular aspects or phenomena.

Theory of Reasoned Action

A psychological theory that proposes that an individual's intention to engage in a behavior is a primary determinant of whether they will actually do so, influenced by their attitudes and subjective norms.