The Time Value of Money Concept Is Given Consideration in Long-Range

question 28

Multiple Choice

The time value of money concept is given consideration in long-range investment decisions by

• A) investing only in short-term projects.
• B) weighting cash flows with subjective probabilities.
• C) assuming equal annual cash flow patterns.
• D) assigning greater value to more immediate cash flows.

---

Definitions:

Dam

A structure built across a river or stream to hold back water for purposes such as storage, flood defense, or electricity generation.

Sediment

Particles of rock, mineral, or organic materials that accumulate in layers on the Earth's surface, often transported by water, wind, or ice.

Base Level

The lowest point to which a stream or river can erode its channel, often sea level for rivers.

Reservoir

A large natural or artificial lake used for the storage and regulation of water, often for public water supply, hydroelectric power generation, or flood control.