Level Return on Investments (ROI) Over the Life of a Long-Term

question 116

Multiple Choice

Level return on investments (ROI) over the life of a long-term project is more likely when ROI is computed using:

• A) historical costs and net book values.
• B) historical costs and gross book values.
• C) current costs and net book values.
• D) current costs and gross book values.

---

Definitions:

Relationship Satisfaction

The degree to which individuals feel fulfilled and content within their romantic, familial, or platonic relationships.

Constant

A situation or state of affairs that does not change.

Investment Model

Theory that uses three factors—satisfaction, alternatives, and investments—to explain why people stay with their long-term relationship partners.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future decisions but often do.