Computing the Present Value of a Future Cash Flow to Determine

question 5

Multiple Choice

Computing the present value of a future cash flow to determine what that cash flow is worth today is called:

• A)compounding.
• B)factoring.
• C)time valuation.
• D)simple cash flow valuation.
• E)discounted cash flow valuation.

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Definitions:

Intrinsic Motivation

Motivation driven by an interest or enjoyment in the task itself, rather than relying on external pressures or rewards.

Extrinsic Motivation

The drive to perform actions or engage in activities due to external rewards or pressures rather than for intrinsic satisfaction.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise.

Drive-reduction

A theory in psychology that suggests motivation arises from the need to reduce internal drives such as hunger or thirst, leading to certain behaviors.