If We Use Future Value Rather Than Present Value to Decide

question 36

Multiple Choice

If we use future value rather than present value to decide whether to make an investment:

• A)we will make a bad decision,since the future value will always be higher if the discount rate is positive.
• B)we will make a bad decision,since the future value will always be lower if the discount rate is positive.
• C)we will make the same decision using either future value or present value.
• D)There is not enough information given to answer the question.

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Definitions:

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A legal case filed by one or several individuals on behalf of a larger group of people who are similarly affected, often against a corporation or organization.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature in the workplace or other professional settings.

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Refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.

Pay Equity

The practice of compensating employees equally for jobs requiring comparable skills, responsibilities, and effort, regardless of gender or other irrelevant factors.