The Investment Rate Is the Percentage of Total Output Allocated

question 72

Multiple Choice

The investment rate is the percentage of total output allocated to

• A)Saving.
• B)Consumer retirement accounts.
• C)Education and training for the workforce.
• D)The production of new plants,equipment,and structures.

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Definitions:

Average Rate of Return

A financial ratio used to evaluate the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost, typically expressed as a percentage.

Straight-Line Depreciation

A strategy for apportioning the cost of a concrete asset into equal yearly sums throughout its serviceable life.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been deducted from total revenue.

Present Value Factor

A factor used in the calculation of the present value of cash flows, based on a specific rate and number of periods.