A Scientific Theory

question 72

Multiple Choice

A scientific theory

• A) is a hypothesis that has been upheld by many experiments.
• B) is an uneducated guess.
• C) has not been tested.
• D) is an educated guess.
• E) can never be proven wrong.

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Definitions:

Net Present Value

A calculation used to determine the present value of a series of future cash flows minus the initial investment, often used in capital budgeting.

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Present Value of An Annuity

The current worth of a series of future payments or receipts, discounted at a specific interest rate.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account to analyze the profitability of investments.