In 2018, ____________ Was the Most Significant Real Asset of U.S

question 50

Multiple Choice

In 2018, ____________ was the most significant real asset of U.S. households in terms of total value.

• A) consumer durables
• B) automobiles
• C) real estate
• D) mutual fund shares
• E) bank loans

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Definitions:

NPV

Net Present Value, a calculation that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Discount Rate

The interest rate that a central bank charges financial institutions for short-term loans, or used in discounted cash flow (DCF) analysis to present value future cash flows.

APR

The Annual Percentage Rate, which is the interest rate for a whole year on a loan, including fees.

Present Value Payback Period

A capital budgeting technique that calculates the period of time required for the present value of future cash flows to cover the initial investment cost.