The Procedure Used to Compute the Present Value of a Series

question 8

Multiple Choice

The procedure used to compute the present value of a series of cash flows is known as:

• A) compounding.
• B) the annuity method.
• C) discounting.
• D) the present-cost approach.
• E) indexing.

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Definitions:

Game

A structured form of play, usually undertaken for entertainment or fun, and sometimes used as an educational tool.

TOTE

The self-regulation feedback loop of Test, Operate, Test, Exit.

Evaluate

To assess or examine something in order to understand its value, importance, or condition, often leading to a judgment.

Error Management Theory

The idea that both men and women seek to minimize the most costly type of error, but that men’s and women’s goals, and hence worst errors, differ.