The Reason That a Discount Factor in Year 3 Is

question 83

Multiple Choice

The reason that a discount factor in year 3 is less than a discount factor in year 2 is that

• A)cash flows are uneven.
• B)compounding does not occur.
• C)cash flows are even.
• D)present value is positive.
• E)a dollar received in three years is worth less than a dollar received in two years.

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Definitions:

Computed Tomography

A diagnostic imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

Epidemiologic Studies

Research efforts aimed at investigating the patterns, causes, and control of diseases in populations.

National Hospital Discharge Survey

A survey designed to collect data on characteristics of inpatients discharged from non-federal short-stay hospitals in the United States.

Representativeness

The extent to which a sample or study findings accurately reflect the broader population from which they were drawn, affecting the generalizability of research conclusions.