If the One-Year Discount Factor Is Equal to 0

question 31

Multiple Choice

If the one-year discount factor is equal to 0.90909, the interest must be equal t?

• A) 10.0%.
• B) 5.0%.
• C) 9.1%.
• D) 9.5%.

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Definitions:

Risk Assumption

The act of taking on the potential for loss or harm as part of a project, investment, or business, often in pursuit of a reward.

Entrepreneur

An individual who creates, launches, and manages a new business, typically taking on significant financial risk.

Controlling

In management, it involves monitoring performance, comparing it with goals, and taking corrective action as needed.

Entrepreneurial Idea

An innovative concept or solution that can be transformed into a viable business opportunity.