The Net Present Value of $100 to Be Received One

question 28

Multiple Choice

The net present value of $100 to be received one year from now will

• A) increase if the interest rate rises.
• B) increase if the payment is delayed until two years from now.
• C) be greater than the net present value of $95 to be received one year from now.
• D) be greater than the value of having $95 now if the interest rate is 10 percent.

---

Definitions:

O'Connor V. Donaldson

A landmark legal case in the United States that established the right of individuals to refuse involuntary psychiatric treatment unless they are a danger to themselves or others.

Involuntarily Committed

The legal process by which individuals are placed into psychiatric treatment centers without their consent due to a perceived risk to themselves or others.

Periodically Reviewed

The process of examining or assessing something at regular intervals of time to ensure current relevance and accuracy.

Defense Attorney

A lawyer specializing in the defense of individuals and companies charged with criminal activity.