John and Nancy Really Would Like to Have a New

question 99

Multiple Choice

John and Nancy really would like to have a new sports utility vehicle now, but with the newborn baby they can't afford the monthly payments. After thinking about it, John says to Nancy, "I guess we'll have to wait until we have the money to buy it." According to psychologist Sigmund Freud's theory of personality, which level is illustrated by this example?

• A)libido
• B)ego
• C)id
• D)superego

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Definitions:

Cash Outflows

The movement of money out of a business, project, or investment, typically related to expenses, purchases, or investments.

Cash Inflows

Money or assets that come into a company, typically through sales, financing, or investments.

NPV

Net Present Value, a calculation that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Discount Rate

The interest rate that a central bank charges financial institutions for short-term loans, or used in discounted cash flow (DCF) analysis to present value future cash flows.