If We Use Future Value Rather Than Present Value to Decide

question 36

Multiple Choice

If we use future value rather than present value to decide whether to make an investment:

• A)we will make a bad decision,since the future value will always be higher if the discount rate is positive.
• B)we will make a bad decision,since the future value will always be lower if the discount rate is positive.
• C)we will make the same decision using either future value or present value.
• D)There is not enough information given to answer the question.

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Definitions:

Primary Receptors

Sensory cells or nerve endings that respond directly to stimuli from the environment, such as light, sound, or chemicals.

Secondary Receptors

Molecules or structures in cells that detect signals from primary receptors and help propagate the signal inside the cell, often involved in signal amplification.

Tonic Receptors

Sensory receptors that respond to stimuli over a prolonged period, maintaining the perception of a sensation.

Action Potential

A quick, temporary change in the electrical charge of a cell's membrane, leading to the transmission of nerve impulses.