To Properly Evaluate the Purchase of a Long-Term Asset, the Expected

question 66

Multiple Choice

To properly evaluate the purchase of a long-term asset, the expected future cash flows must be adjusted for

• A) Property taxes
• B) Interest
• C) Time value of money
• D) Future revenues

---

Definitions:

Behavioral Intention

A person's predisposition towards performing a certain action, influenced by personal attitudes and societal norms.

Theory of Planned Behavior

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, based on their attitude, subjective norms, and perceived behavioral control.

Attitude-Behavior Consistency

The extent to which an individual's behaviors or actions mirror their feelings and beliefs.

Effort Justification

A phenomenon where people attribute a greater value to an outcome they had to put effort into achieving, often to reduce cognitive dissonance.