In Which of the Following Situations Would It Not Be

question 77

Multiple Choice

In which of the following situations would it not be appropriate to use the following formula: when determining the present value (PV) of a cash flow stream?

• A)when yield curves are flat
• B)when short-term and long-term interest rates vary widely
• C)when the inflation rate is high
• D)when the discount rate is high
• E)when the real interest rate is high

---

Definitions:

Unanimity

A condition in decision-making where all members of a group fully agree on a specific decision or outcome.

Independence of Irrelevant Alternatives

A decision-making principle asserting that the relative preference between two options should not be affected by the introduction of a third irrelevant option.

Borda Count Election

A voting method that involves ranking candidates in order of preference, with points assigned based on position in the ranking, to determine the winner.

First Choice

The primary option or preference selected from a range of alternatives.