Fin 320f unit exam - Study guides, Class notes & Summaries

FIN 320F Exam 1 Working Words (Duvic) Q&A with Complete Solutions Already Graded A+ UNIT 1 - Incentives - Something that motivates a person to take or avoid taking an action. Resources - Physical or intangible assets that can be used to accomplish a goal. Confirmation Bias - The tendency to process information by looking for, or interpreting information that is consistent with one's existing beliefs. Encyclopaedia Brittanica Economic activity - The production, distribution and consu...

Describe how NPV is calculated and describe the information this measure provides about a sequence of cash flows. What is the NPV criterion decision rule? PV is the sum of the present values of a project's cash flows. It's a way of doing cost-benefit analysis.For most projects their cash flows occur at different points in time. A valid comparison is possible only if these cash flows can be restated as of a single point in time. This involves using the opportunity cost, which reflects the basi...

Opportunity Cost The best alternative which is not selected because another course of action is pursued First Principle of Finance/Time Value of Money A dollar received today is worth more than a dollar received in the future Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More Cash Flow The flow of purchasing power that can be used to value and facilitate the transfer of economic assets Risk The u...