When We Tend to Imagine That the Outcomes of Situations

question 24

Multiple Choice

When we tend to imagine that the outcomes of situations will be better for us than for other people this is referred to as _____________.

• A) BIRGing
• B) unrealistic optimism
• C) CORFing
• D) ingratiation

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return; used in financial analysis to assess the value of future income.

Capital Investment

The expenditure of funds by a firm to acquire physical assets, such as property, plant, or equipment, to improve its long-term income and profitability.

Net Present Value Method

A method of analysis of proposed capital investments that subtracts the amount to be invested from the present value of the cash flows expected from the investments.

Cash Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment based on its expected cash flows.