You Are Considering Two Projects with the Following Cash Flows

question 54

Multiple Choice

You are considering two projects with the following cash flows: Which of the following statements are true concerning these two projects?
I.Both projects have the same future value at the end of year 4,given a positive rate of return.
II.Project A has a higher future value than project B,given a positive rate of return.
III.Both projects have the same future value at any point in time,given a positive rate of return.
IV.Both projects have the same future value given a zero rate of return.

• A)II only
• B)IV only
• C)I and IV only
• D)II and IV only
• E)I, II, and III only

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Definitions:

Injunctive Norms

Social rules that define what behaviors are perceived as acceptable or unacceptable within a society or group.

Subjective Norms

Individual beliefs about whether people important to them approve or disapprove of a specific behavior, influencing their intentions and actions.

Peer Pressure

The influence exerted by a peer group in encouraging a person to change their attitudes, values, or behaviors to conform to group norms.

Descriptive Norm

Social norms that describe what is typically done in a given context, influencing individuals' behavior by providing information about what is considered normal or typical behavior.