How Are Present Values of Cash Flows Obtained in a Net

question 49

Multiple Choice

How are present values of cash flows obtained in a Net Present Value calculation?

• A) By discounting at the opportunity cost of capital
• B) By adding a term to allow for future risk
• C) By allowing for the internal rate of return
• D) By discounting at the impatience to consume rate of return

---

Definitions:

Ju/'hoansi

The Ju/'hoansi are a group of indigenous people belonging to the San society, known for their hunter-gatherer lifestyle predominantly in the Kalahari Desert area.

Mana

A concept in Polynesian culture referring to a supernatural force or spiritual energy inherent in people, objects, and the environment.

Animatism

The belief that nature is enlivened or energized by an impersonal spiritual force or supernatural energy, which may make itself manifest in any special place, thing, or living creature.

Priests

Priests are religious leaders authorized to perform sacred rituals and guide individuals in matters of faith within various religions.