If a 10% Discount Rate Is Used, What Is the Present

question 2

Multiple Choice

If a 10% discount rate is used, what is the present value of the following two cash inflows?
£1,600 received in one year's time, plus
£2,000 received in two years' time.

• A) £3,116
• B) £2,988
• C) £3,276
• D) £3,148

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Definitions:

Deinstitutionalization

The transition from extended-duration psychiatric facilities to more integrated community mental health services for individuals identified with mental illnesses.

Mental Hospitals

Institutions specialized in the treatment and care of individuals with mental health conditions; also known as psychiatric hospitals.

Alternative Forms of Care

Various unconventional methods of healthcare and treatment practices that differ from standard medical practices, including herbal medicine, acupuncture, and homeopathy.

Psychological Treatment

Therapeutic interventions and practices aimed at addressing mental health issues through psychological means rather than medical.