If Variable X Goes Up as Variable Y Goes Down,then

question 94

Multiple Choice

If variable X goes up as variable Y goes down,then X and Y are

• A) directly related.
• B) inversely related.
• C) independent.
• D) positively related.

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Definitions:

IRR

Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. It is used to evaluate the attractiveness of an investment or project.

Hard Capital Rationing

Hard capital rationing involves a situation where a company cannot access additional funds for investments at any cost due to external factors, such as market conditions or regulatory limits.

Discounted Payback

A capital budgeting method that calculates the time it takes to recoup an investment's initial costs, taking the time value of money into account.

Time Value of Money

The concept that money available at the present time is worth more than the same amount in the future due to its earning capacity.