Ole and Lena Are a Cohabitating Couple in Norway, While

question 37

Multiple Choice

Ole and Lena are a cohabitating couple in Norway, while Jack and Diane are a cohabitating couple in the United States. Cross-cultural research would predict that:

• A) Ole and Lena will only marry if they have children.
• B) Ole and Lena will believe that they are living in sin.
• C) Jack and Diane will be unlikely to ever marry.
• D) Jack and Diane will be at significantly less risk for divorce should they marry.

---

Definitions:

Sunk Cost

A cost that has already been incurred and cannot be recovered, and should not affect future investment or spending decisions.

Capital Budgeting

The process used by businesses to evaluate and prioritize investments in long-term assets and projects based on their potential returns.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

IRR

Stands for Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments.