​Consider the Returns on Four Investment Options: A, B, C

question 64

Multiple Choice

​Consider the returns on four investment options: A, B, C, and D.All four investment options require the same principal amount, and the returns on the investments are considered over the same time frame.The present value of the return on investment A is greater than the present value of the return on investment B, which is greater than the present value of the return on investment C.The present value of the return on investment D is the lowest.A rational investor will choose to invest in:

• A)option A.
• B)option B.
• C)​option C.
• D)​option D.

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Definitions:

Mutual Adjustment

A process of coordination where individuals or groups modify their actions based on interactions with others, to achieve a common goal or maintain harmony.

Informal Means

Methods or processes that occur naturally or are created through casual interactions rather than through formal structures or procedures.

Divided Labour

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency, also known as division of labor.

Standardization of Outputs

The process of making products or services uniform to ensure consistency and reliability.