Cash Flows Occurring in Different Periods Should Not Be Compared

question 14

Multiple Choice

Cash flows occurring in different periods should not be compared unless:

• A) interest rates are expected to be stable.
• B) the flows occur no more than one year from each other.
• C) high rates of interest can be earned on the flows.
• D) the flows have been discounted to a common date.

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Definitions:

Survey

A method of gathering information from individuals, usually by asking a series of questions.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses, while giving disproportionately less consideration to alternative possibilities.

Debriefing

A process following a research study or mission where participants are explained the purpose and findings, and any deception is revealed.

Deception

The act of misleading or deceiving someone by presenting false information or concealing the truth.