Randy Has to Choose Between Two Cash Flows

question 33

True/False

Randy has to choose between two cash flows. He could either receive the future value of an investment of $1,000 at 8 percent annually in three years or in five years. Randy should always choose the shorter investment term because it is worth more today.

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Definitions:

Long-Term Goals

Long-term goals are objectives or aspirations that an individual or organization aims to achieve over an extended period, often several years or more.

All You Can Eat

A dining option where customers can consume as much food as they wish for a fixed price.

Portion Sizes

The amount of a particular food served or consumed in one eating occasion.

Socially Accepted

Behaviors, beliefs, or norms that are widely approved or tolerated by society.