Which of the Following Statements Is FALSE

question 14

Multiple Choice

Which of the following statements is FALSE?

• A)Finding the present value and compounding are the same.
• B)A dollar today and a dollar in one year are not equivalent.
• C)If you want to compare or combine cash flows that occur at different points in time,you first need to convert the cash flows into the same units and/or move them to the same point in time.
• D)The equivalent value of two cash flows at two different points in time is sometimes referred to as the time value of money.

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Definitions:

Independent Variable

A factor or condition that is intentionally varied by the researcher to observe its impact on the dependent variable in an experiment.

Dependent Variable

In an experiment, it is the variable that is being tested and measured, expected to change as a result of manipulations to the independent variable.

Gustav Theodor Fechner

A German philosopher, physicist, and experimental psychologist, known as a founder of psychophysics, which quantifies the relationships between physical stimuli and the sensations and perceptions they affect.

Psychophysics

The branch of psychology that studies the relationships between physical stimuli and the sensations and perceptions they produce.