When Computing a Present Value, Which of the Following Is

question 35

Multiple Choice

When computing a present value, which of the following is TRUE?

• A) You should adjust the discount rate to match the interval between cash flows.
• B) You should adjust the future value to match the present value.
• C) You should adjust the time period to match the present value.
• D) You should adjust the cash flows to match the time period of the discount rate.

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Definitions:

Methodological Crisis

a situation in a field of study marked by a questioning of traditional research methods and the validity of their results, often leading to reforms.

.05 Level Of Significance

A statistical threshold indicating that the probability of the observed results occurring by chance is 5% or less, suggesting that the results are statistically significant.

"Significant" Findings

In research, findings that are statistically significant indicate that the results observed are unlikely to be due to chance, suggesting a meaningful effect or relationship.

Flukes

Unpredictable events of chance or luck, especially those leading to a favorable outcome.