Suppose an Investment Has Cash Inflows of R Dollars at the End

question 267

Multiple Choice

Suppose an investment has cash inflows of R dollars at the end of each year for two years. The present value of these cash inflows using a 12% discount rate will be:

• A) greater than under a 10% discount rate.
• B) less than under a 10% discount rate.
• C) equal to that under a 10% discount rate.
• D) sometimes greater than under a 10% discount rate and sometimes less; it depends on R.

---

Definitions:

Positive Attitude

An optimistic mindset that focuses on the good aspects of a situation, encouraging constructive responses to challenges or setbacks and promoting overall well-being and success.

Positive Thinkers

Individuals who focus on the good in any situation and maintain a hopeful outlook.

Seek Perfection

The pursuit of achieving flawlessness and the highest standard in tasks, activities, or productions.

Creative Thinker

An individual who has the ability to think in new and imaginative ways, generating innovative ideas and solving problems creatively.