Why Is a Discount Factor in Year 3 Less Than

question 148

Multiple Choice

Why is a discount factor in year 3 less than a discount factor in year 2?

• A)because a dollar received in three years is worth less than a dollar received in two years
• B)because compounding does not occur
• C)because cash flows are even
• D)because present value is positive

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Definitions:

Employee Referrals

A recruitment strategy where current employees recommend potential candidates for open positions within their organization.

Protected Groups

Refers to specific categories of people who are legally recognized as potentially subject to discrimination or unfair treatment and are thus afforded certain legal protections.

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Internet Recruiting

The process of finding and attracting job candidates through the internet, using websites, social media platforms, and job portals.