Why Is It Usually Necessary to Use the Time Value

question 101

Multiple Choice

Why is it usually necessary to use the time value of money when performing a cost-benefit analysis?

• A)For an investment project to be considered,costs must have a higher dollar value than benefits.
• B)In most investment projects costs are incurred up front,but benefits are provided in the future.
• C)For practical purposes,a dollar today may be considered to be equal to a dollar at some future time.
• D)Although costs and benefits generally occur concurrently,the benefits will accrue value over time,due to interest.
• E)Since money is worth more in the future,if the time value of money is not considered,profitable investments will be passed up.

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Definitions:

Suprachiasmatic Nucleus

A region of the brain located in the hypothalamus that regulates circadian rhythms, controlling the body's internal clock.

Slave Oscillators

Secondary timekeeping systems that synchronize with a primary oscillator to regulate rhythms in organisms.

Thalamus

Diencephalon structure through which information from all sensory systems is organized, integrated, and projected into the appropriate region of the neocortex.

Suprachiasmatic Nucleus

A tiny region of the brain in the hypothalamus, responsible for controlling the circadian rhythm or the body's internal clock.