Determine Whether These Two Events Are Mutually Exclusive: Someone with Three

question 149

Multiple Choice

Determine whether these two events are mutually exclusive: someone with three sisters and someone with four siblings.

• A) mutually exclusive
• B) not mutually exclusive

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Definitions:

Required Rate

is the minimum return that investors expect from an investment, taking into account the risk level compared to the risk-free rate of return.

Net Present Value

A valuation method used to determine the attractiveness of an investment opportunity, calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Profitability Index

A financial metric used to evaluate the desirability of an investment or project, calculated as the present value of future cash flows divided by the initial investment cost.

Discounted Payback

is a capital budgeting method that calculates the period of time required for the discounted cash flows from a project to recoup its initial cost.