If the One-Year Discount Factor Is 0

question 15

Multiple Choice

If the one-year discount factor is 0.90, what is the present value of $120 to be received one year from today?

• A) $100
• B) $96
• C) $108
• D) None of the above

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Definitions:

Calico Cats

Cats characterized by a tri-color fur pattern, typically involving patches of orange, black, and white, this pattern is most commonly found in female cats due to genetic linkage to the X chromosome.

X Chromosome Inactivation

A process in female mammals where one of the two X chromosomes is inactivated to ensure dosage compensation for gender-based genetic differences.

Phenotype

The set of observable characteristics of an individual resulting from the interaction of its genotype with the environment.

Homozygous

A genetic condition where an individual inherits the same alleles for a particular gene from both parents.