If We Use Future Value Rather Than Present Value to Decide

question 36

Multiple Choice

If we use future value rather than present value to decide whether to make an investment:

• A)we will make a bad decision,since the future value will always be higher if the discount rate is positive.
• B)we will make a bad decision,since the future value will always be lower if the discount rate is positive.
• C)we will make the same decision using either future value or present value.
• D)There is not enough information given to answer the question.

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Definitions:

IRB Committee

A group tasked with reviewing and overseeing research involving human participants to ensure ethical standards are met.

Informed Consent

A legal and ethical requirement where a participant agrees to partake in research after understanding its risks and benefits.

Potential Benefits

The possible advantages or positive outcomes that may result from a specific action, project, or research.

Humanitarian Benefits

Positive impacts or aid provided to individuals or communities in crisis, aimed at saving lives, alleviating suffering, and maintaining human dignity.