Given a Firm with Positive Annual Cash Flows,which One of the Following

question 77

Multiple Choice

Given a firm with positive annual cash flows,which one of the following will increase the current value of that firm?

• A)Increasing the annual growth rate of the cash flows
• B)Increasing the discount rate
• C)Decreasing the amount of each cash flow
• D)Decreasing the life of the firm
• E)Increasing either the growth rate of the cash flows or the discount rate

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Definitions:

Free Will

The ability of individuals to make choices that are not predetermined by prior causes or divine intervention.

External Consequences

Outcomes or reactions stemming from an individual's actions that occur outside of the individual, affecting their environment or other people.

Skinner

B.F. Skinner, an American psychologist and behaviorist, known for his work in the development of the theory of operant conditioning.

Cognitive Psychologists

Cognitive psychologists study mental processes including perception, thinking, memory, and judgment, focusing on how people understand, diagnose, and solve problems.