Question
The number of periods necessary to repay the original investment is the: payback discount factor accounting rate of return time value of money 2-The value
The number of periods necessary to repay the original investment is the:
payback
discount factor
accounting rate of return
time value of money
2-The value of a future set of cash flows in today's dollars is calculated using:
compound interest
net present value
internal rate of return
accounting rate of return
3-The ratio of average net income to the capital employed is the:
net present value
accounting rate of return
payback
internal rate of return
4-$5000 is invested for two years at 3%simple interestper year.The total interest earned after two years is:
$300.00
$304.50
$150.00
$5300.00
5-A discounting procedure providing a common base of comparison for alternative cash flows is the:
compound interest
accounting rate of return
discount rate
net present value
6-The discount rate resulting in a NPV equal to zero is the:
discount factor
accounting rate of return
net present value
internal rate of return
7-When interest is paid on both the principal amount and prior interest earned, this is called:
accounting rate of return
the discount factor
compound interest
simple interest
8-
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