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:

Faith

Belief, trust, and obedience to a religious deity.

Mere Belief

A conviction held without the support of evidence or rational justification.

Twenty-First Century

The current century, spanning from the year 2001 to 2100, characterized by rapid technological advancement and globalization.

Confined

Restricted in space or area; being in a situation that limits freedom of movement or action.