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Imagine you have a friend who is typically quiet, thoughtful, and reserved.However, when your friend drinks, you can never tell what he/she is going to do.One minute your friend is dancing wildly and having a great time, but the next minute your friend is reacting aggressively to being slightly nudged by another dancer.Describe two reasons presented in the text for why alcohol would have such an effect on your friend.
Profitability Index
A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.
Net Cash Flow
The variance between the cash coming into and going out of a business within a given timeframe.
Discount Rate
The interest rate used to discount future cash flows to their present value, enabling comparison of the value of investments made at different times.
Net Present Value
A method used to evaluate investments by calculating the present value of expected future cash flows minus the initial investment cost.
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