What Property of Real Numbers Allows Us to Write A(b

question 9

Multiple Choice

What property of real numbers allows us to write a(b + c) = a(c + b) ?

• A) commutative
• B) distributive
• C) identity
• D) associative
• E) none of the above

---

Definitions:

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows or to assess the attractiveness of an investment.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.

Initial Cost

The upfront expenditure involved in the purchase of an asset or the start of a project.