The Net Present Value and Internal Rate of Return Methods

question 66

True/False

The net present value and internal rate of return methods are appropriate for longer-term investments because they ignore the time value of money.

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Definitions:

Serial Position Effect

A cognitive phenomenon whereby items at the beginning and end of a list are remembered more easily and accurately than those in the middle.

Serial Position Effect

A phenomenon in memory which suggests that when learning a list of items, the probability of recalling an item is dependent on its position in the list, with early and late items being more likely to be remembered than middle items.

Primacy Effect

The tendency to remember information that is presented first or early in a list more effectively than information presented later.

Recency Effect

The psychological phenomenon where the most recently presented information is remembered better than earlier information.