You Are Trying to Get a Friend to Lend You

question 581

Multiple Choice

You are trying to get a friend to lend you $20. You think that it might be a good idea to ask him for $50 first, then after he refuses, ask if he could give you $20. If you do this you would be using

• A)the over-justification effect
• B)the door-in-the-face technique
• C)the foot-in-the-door technique
• D)the low-ball technique
• E)the distress relief technique

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Definitions:

Discount Factor(s)

A numerical factor used to calculate the present value of future cash flows, reflecting the time value of money.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments, reflecting the asset’s gradual decrease in value.

Payback Period

The length of time it takes for an investment to recover its initial outlay in terms of profits or savings.

Initial Investment

The initial amount of money spent to start a project or business venture, often covering expenses like equipment and setup costs.