Which of the Following Is NOT a Reason to See

question 90

Multiple Choice

Which of the following is NOT a reason to see inequality in income between individual X and individual Y?

• A) X was born into a wealthy family,while Y was not.
• B) X has a disability making it difficult to work,while Y does not.
• C) X goes to university in the East,while Y goes to university in the West.
• D) X is black,while Y is white.
• E) X's father owns a multi-million dollar company,while Y's father is a janitor.

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Definitions:

Average Rate of Return

A financial ratio that measures the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Present Value Method

An approach to evaluate the current worth of a future cash flow, considering a specific rate of interest or cost of capital.

Capital Investment Analysis

The process of assessing the viability, stability, and profitability of long-term investments to determine their potential impact on the financial health of an entity.

Cash Payback Method

A capital budgeting technique that calculates the time needed to recoup the cost of an investment, based on cash inflows.