In the Net Present Value Method,the World of Certainty Assumption

question 88

Multiple Choice

In the net present value method,the world of certainty assumption means that ________.

• A)the predicted cash inflows and cash outflows are certain to occur at the times specified
• B)the predicted cash inflows and cash outflows are sunk costs
• C)the predicted cash inflows and cash outflows are opportunity costs
• D)all investments are equal in value

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership of the company and usually rights to dividends and voting on corporate matters.

HMOs

Health Maintenance Organizations; a type of health insurance plan that provides healthcare services to members through a network of doctors, hospitals, and other healthcare providers.

Americans

Residents or citizens of the United States, although the term can also broadly refer to people from the American continent.

HMOs

Health Maintenance Organizations, a type of health insurance plan that provides a wide range of healthcare services through a network of providers for a fixed annual fee.