The Present Value of a Single Future Sum

question 22

Multiple Choice

The present value of a single future sum

• A) increases as the number of discount periods increases.
• B) is generally larger than the future sum.
• C) depends upon the number of discount periods.
• D) increases as the discount rate increases.

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Definitions:

Environmental Factors

External elements such as economic, political, social, and physical conditions that influence individuals or organizations.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors and attitudes.

Situational Factors

External influences that can impact an individual's behavior or performance, such as environmental conditions, social pressures, or task characteristics.

Self-esteem

An individual's sense of their own value and worth.