Ashley Just Started College

question 79

Multiple Choice

Ashley just started college. If she is like about one out of four college freshmen, Ashley will:

• A) have to work full time while she attends classes.
• B) have extra help to be college ready.
• C) live in the dormitories to save expenses.
• D) live at home but be independent financially.

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Definitions:

Capital Rationing

A strategy or situation where a company limits its new investments or projects due to constraints in available capital.

NPV

Net Present Value; a calculation used to estimate the value of an investment, considering the present value of its future cash flows.

Option To Wait

The choice to delay an investment or decision, which might carry value by allowing more information to be gathered, potentially leading to a better informed decision.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.