The Discount Rate Is Adjusted

question 36

Multiple Choice

The discount rate is adjusted:

• A) upward to reflect higher risk and to increase the future cash flows.
• B) upward to reflect higher risk and to reduce the future cash flows.
• C) downward to reflect higher risk and to increase the future cash flows.
• D) downward to reflect higher risk and to reduce the future cash flows.

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Definitions:

Deliberate System

Refers to the cognitive process that is slow, logical, and often conscious, typically involved in complex decision making.

Pursuit

The action of following or striving to achieve something, often with determination.

Goals

Targets or outcomes that an individual or organization aims to achieve through specific actions or behaviors.

Self-regulation

The process by which individuals control their behavior, emotions, and thoughts towards achieving long-term goals.