Seven-Year-Old Tarun Is Baking Cookies for the First Time

question 120

Multiple Choice

Seven-year-old Tarun is baking cookies for the first time.He does not know what a tablespoon is,so every time the recipe says to use a tablespoon,he uses a teaspoon instead.
Tarun's system of measurement has ________ validity and ________ reliability.

• A) low;low
• B) high;low
• C) high;high
• D) low;high

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Definitions:

Payback

A capital budgeting method that calculates the time needed to recoup the cost of an investment, based on its expected cash flows.

Market Rate

The current price at which an asset or service can be bought or sold in the marketplace.

Present Value

The amount of money that, if invested today, would grow to a designated future amount. Discounted value of future cash flows.