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You memorize your four-digit PIN number for your bank card,but you also store this number on your phone.You keep your bank card and your phone in your backpack,and a thief steals your backpack.When you get your new bank card,you have to make up a new PIN,but every time you try to withdraw money,you can only remember the old PIN.What best explains this combination of remembering and forgetting?
Initial Cost
The acquisition cost of an asset or investment, which might include the purchase price and any other expenses necessary to get the asset ready for use.
Profitability Index
A financial tool used to measure the relative profitability of an investment project, calculated as the present value of future cash flows divided by the initial investment.
Required Rate
The Required Rate, often known as the required rate of return, is the minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular project or investment.
Cash Flows
The total amount of money being transferred into and out of a business, considered as the lifeblood of corporate finance.
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