The Future Value of an Uneven Cash Flow Stream Is

question 13

Multiple Choice

The future value of an uneven cash flow stream is also referred to as its _____. 

• A)discounted value
• B)amortized value
• C)consolidated value
• D)terminal value
• E)periodic value

---

Definitions:

Confirmation Bias

The tendency to favor, interpret, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by its similarity to a prototype or an example that comes to mind, rather than on objective probability.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.

Confirmation Bias

The propensity to find, interpret, choose, and recollect details in a way that corroborates the existing beliefs or hypotheses of a person.