Vignette #1 Robert and Chris Have Been at a Local

question 13

Multiple Choice

Vignette #1 Robert and Chris have been at a local bar near their dormitory for 1 hour. Chris has had three beers already and Robert tells him to slow down because too much alcohol can cause death. Chris says this is not true since you just go to sleep when you drink too much. Chris also says that since he is allowed two drinks a day on average, he decided to save them up for the weekend. Robert is beginning to suspect that Chris might have a drinking problem. Let's see if you know more than Chris does concerning alcohol by answering these questions.
As a friend, Robert asks Chris to consider whether low to moderate alcohol consumption is a health benefit or a health risk for him personally. Robert also reminds Chris that the leading cause of death for college-age males is ____.

• A) heart disease
• B) accidents
• C) diabetes
• D) stroke
• E) drug abuse

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Definitions:

Income Taxes

Taxes imposed by the government on the income generated by businesses and individuals.

Net Present Value

A financial metric that calculates the present value of all cash flows (both incoming and outgoing) associated with an investment, adjusted for time and interest.

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, indicating the annual return that makes the net present value of all cash flows from a particular project equal to zero.

Cash Flows

The sum of cash flowing in and out of a company, particularly influencing its available cash assets.