Suppose an Investment Has Cash Inflows of R Dollars at the End

question 146

Multiple Choice

Suppose an investment has cash inflows of R dollars at the end of each year for two years.What will be the present value of these cash inflows using a 12% discount rate?

• A) Greater than under a 10% discount rate.
• B) Less than under a 10% discount rate.
• C) Equal to that under a 10% discount rate.
• D) Sometimes greater than under a 10% discount rate and sometimes less; it depends on R.

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Definitions:

Optimum Interstimulus Interval

The ideal time gap between the presentation of a conditioned stimulus and an unconditioned stimulus for effective associative learning to occur.

Knee-Jerk Reflex

A reflexive action produced by a sharp tap on the tendons just below the kneecap, demonstrating the patellar reflex.

CS

Stands for Conditioned Stimulus, which is a previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

UCS

Unconditioned Stimulus, an aspect of classical conditioning; a stimulus that naturally triggers a reflexive or unconditioned response without prior learning.