Which of the Following Is a Normative Statement

question 171

Multiple Choice

Which of the following is a normative statement?

• A) The current exchange rate is 0.7 British pounds per U.S.dollar.
• B) In January,the average temperature in Fargo,North Dakota,is 56 degrees.
• C) Winters in Arkansas are too cold.
• D) On average,people save 15 percent when they switch to GEICO.
• E) University of Virginia graduates earn more than Duke University graduates.

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Definitions:

Future Cash Flows

Future cash flows refer to the estimated amounts of money to be received or paid by a business in the future, often used in investment analysis and valuation.

Present Value

The immediate monetary value of a future sum of money or cash flow sequences, utilizing a known rate of return for calculation.

Excel

A spreadsheet program created by Microsoft that allows users to organize, format, and calculate data with formulas using a system of cells arranged in rows and columns.

Calculation

The process of determining a result numerically, often involving mathematical operations and formulas.