Identity Theft

question 28

Multiple Choice

Identity theft:

• A) is a relatively new crime that was created through use of the Internet.
• B) has about 8 million American victims each year.
• C) has slight impact on the victim since consumer law protects owners of credit cards and limits their loss to $50 if they promptly report the loss of their card.
• D) is now addressed by only state statutes.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment valuation and project evaluation.

Annual Net Cash Inflows

The total amount of cash received minus cash expenses over a year.

Net Present Value

The discrepancy in the present valuation of incoming and outgoing cash flows within a certain timeframe.

Useful Life

The estimated duration of time a fixed asset is considered to be productive for its intended use.