Vince,an Extraverted University Freshman,has Just Moved into a Dormitory

question 138

Multiple Choice

Vince,an extraverted university freshman,has just moved into a dormitory. Vince is most likely to become friends with

• A)Alfonse,a junior who is majoring in psychology and lives across the hall.
• B)Mohammed,an introverted student who lives on the next floor and enjoys playing chess.
• C)James,a lonely sophomore who lives down the hall and is undecided about his major.
• D)Bill,his assigned roommate who is majoring in computer science.

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Definitions:

Discount Rate

Discount Rate is the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Mutually Exclusive

Situations or events that cannot occur at the same time; choosing one option excludes the choice of another.

Cash Flows

The total sum of money transfers both incoming and outgoing in a firm, majorly affecting its financial readiness.

Profitability Index (PI)

The present value of an investment’s future cash flows divided by its initial cost; also benefit/cost ratio.