When the Annual Cash Flows from an Investment Are Unequal

question 7

Multiple Choice

When the annual cash flows from an investment are unequal, the appropriate table to use is in the calculation of net present value is the

• A)future value of 1 table.
• B)future value of annuity table.
• C)present value of 1 table.
• D)present value of annuity table.

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Definitions:

Informational Social Influence

Influence resulting from one’s willingness to accept others’ opinions about reality.

Chameleon Effect

The unconscious mimicry of the postures, mannerisms, facial expressions, and other behaviors of one's interaction partners.

Groupthink

The mode of thinking that occurs when the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives.

Normative Social Influence

The influence of other people that leads us to conform in order to be liked and accepted by them.