_____ Is a Perceptual Error That Represents the Tendency to Avoid

question 85

Multiple Choice

_____ is a perceptual error that represents the tendency to avoid all extreme judgments and rate people and objects as average or neutral.

• A)Contrast effect
• B)Recency effect
• C)Central tendency
• D)Leniency
• E)Halo

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Definitions:

Present Value

The present worth of a future amount of money or series of cash inflows, calculated using a given rate of return.

Annual Net Cash Flows

Annual net cash flows represent the amount of cash a company generates or loses within a year from its operating, investing, and financing activities.

Required Return

The minimum amount of profit or gain an investor expects to achieve from an investment to make it worthwhile.

Net Present Value Method

A financial modeling technique that evaluates the profitability of an investment by discounting future cash flows to their present value and subtracting the initial investment.