1. Glenn is weighing whether to buy an equipment for his new computer shop, and weighs the pros and cons, he does his analysis using the net present value method. What do you call the process that he is making? A. Capital Budgeting B. Investment Analysis C. Financial Decision Making
1. Glenn is weighing whether to buy an equipment for his new computer shop, and weighs the pros and cons, he does his analysis using the net present value method. What do you call the process that he is making? A. Capital Budgeting B. Investment Analysis C. Financial Decision Making
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1. Glenn is weighing whether to buy an equipment for his new computer shop, and weighs the pros and cons, he does his analysis using the net present value method. What do you call the process that he is making?
A. Capital Budgeting
B. Investment Analysis
C. Financial Decision Making
2. What concept of bias that practices guarding some money cautiously when we mentally categorize it for a house, but spend it liberally when it's "fun money".
A. Mental accounting
B. Outcome Bias
C. Overconfidence bias
3. What type of bias relies too heavily on one piece of information in making a final decision?
A. Availability Heuristic Bias
B. Bandwagon Effect
C. Anchoring Bias
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