In the Laboratory Research Study by Bushman and Anderson, Participants

question 40

Multiple Choice

In the laboratory research study by Bushman and Anderson, participants played either violent or nonviolent video games, then filled out a questionnaire. Which of the following describes what they found?

• A) participants who played violent video games completed the questionnaires faster than participants who played non-violent video games
• B) participants who played violent video games reported less violence in the video games than participants who played non-violent video games
• C) participants who played violent video games
• D) participants who played violent video games were slower to help an individual in an adjacent room compared to participants who played non-violent video games
• E) participants who played violent video games did not help an individual in an adjacent room compared to participants who played non-violent video games

Calculate and interpret the effective annual rate (EAR) from an annual percentage rate (APR).

Distinguish between stated, compound, periodic, and effective annual interest rates.

Describe the characteristics and valuation of annuities and perpetuities.

Analyze the cash flows of different financial projects to determine their future values.

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Definitions:

Cash Outflows

Money going out of a business, including expenses, investments, and distributions to shareholders.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Replacement Chain

A decision analysis tool used to choose between mutually exclusive projects with differing durations by comparing the equivalent annual annuity.

Equivalent Annual Annuity

A financial calculus method for comparing the annualized cash flows of projects with different lifespans.