Which of the Following Statements Is Not True About Indexes

question 7

Multiple Choice

Which of the following statements is not true about indexes?

• A)They should be added to every field.
• B)They should be added to fields which are searched or sorted often.
• C)They improve performance.
• D)They are commonly suggested by the Performance Analyzer tool.

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Definitions:

IRR

Internal Rate of Return; the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

WACC

Short for Weighted Average Cost of Capital, it measures a firm's cost of capital, considering the weighted costs of equity and debt financing.

NPV

Net Present Value; a calculation used to determine the value of an investment by assessing the present value of its cash flows minus the initial investment.

Cash Flow

The combined total of money coming in and going out of an enterprise, significantly affecting its financial fluidity.