You Plan to Analyze the Value of a Potential Investment

question 63

Multiple Choice

You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would lower the calculated value of the investment?

• A) the discount rate decreases.
• B) the cash flows are in the form of a deferred annuity, and they total to $100,000. you learn that the annuity lasts for only 5 rather than 10 years, hence that each payment is for $20,000 rather than for $10,000.
• C) the discount rate increases.
• D) the riskiness of the investment's cash flows decreases.
• E) the total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.

Understand the benefits of exercise on mental health, such as reducing depression and anxiety.

Recognize the psychological and physical benefits of mindfulness meditation.

Explain the role of positive psychology in promoting human strengths and virtues.

Identify the impact of social and religious activities on health and lifespan.

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Definitions:

Mental Operations

Cognitive processes that enable individuals to organize thoughts and solve problems logically.

Appearance

The way that someone or something looks to the eyes, encompassing aspects like shape, color, and texture, or the presentation of a person.

Stone

A solid aggregate of one or more minerals or mineraloids.

Egg

A reproductive cell produced by females of various species, including birds, reptiles, amphibians, and humans (ova).