A Car Holds Seven Passengers, Four in the Front Seat

question 11

Multiple Choice

A car holds seven passengers, four in the front seat and three in the back seat. How many different seating arrangements of seven people are possible if two people refuses to sit in front and one person refuses to sit in back?

• A)24
• B)2,520
• C)864
• D)6
• E)1,260

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Definitions:

Initial Investment

The amount of money invested at the start of a project or business venture to get it off the ground.

Positive Future Cash Flows

The expectation or projection of an increase in the amount of money flowing into a company over a period of time, typically resulting from operations, investments, or financing activities.

Capital Budgeting Technique

A process of evaluating and comparing the potential expenditures or investments which are significant in amount, to determine their worthiness for funding.

Present Valued Dollar

The current value of a future sum of money or stream of cash flows given a specified rate of return.