An Important Element in Estimating the Present Value of an Investment

question 17

Multiple Choice

An important element in estimating the present value of an investment is the calculation of the discount factor. The discount factor may be expressed as _______ where r is the discount rate and n is the number of years the investment is held.

• A) 1 + r)ⁿ
• B) 1 + n)^r
• C) 1/1 + r)ⁿ
• D) 1/1 + n)^r

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Definitions:

Frontal Lobes

The part of the brain located at the front of each cerebral hemisphere, responsible for decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Alexander Luria

A Soviet neuropsychologist known for his work on the development of cognitive psychology, brain injury, and the study of human consciousness.

Observations

The action or process of closely monitoring or noticing something or someone, often used as a method for collecting data in research.

Brain Parts

Components of the brain, such as the cerebrum, cerebellum, and brainstem, each responsible for different functions and processes.