Which of the Following Statements Is True

question 18

Multiple Choice

Which of the following statements is true?

• A) High tides are caused by the sun, low tides by the moon.
• B) Low tides are caused by the sun, high tides by the moon.
• C) The moon is chiefly responsible for the tides, with the sun's influence modifying the tidal range.
• D) The sun is chiefly responsible for the tides, with the moon's influence modifying the tidal range.

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Definitions:

Required Rate

The minimum percentage return that an investment must yield to be considered acceptable. It is essentially another term for the required return on investment, critical for financial planning and analysis.

Cash Flows

Cash flows are the net amount of cash and cash-equivalents being transferred into and out of a business.

Required Return

The minimum expected return on an investment, necessary to compensate for the risk taken by the investor.

IRR

The Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments. It is the discount rate that makes the net present value of all cash flows from a particular project equal to zero.