When Computing the Rate of Return from Selling an Investment

question 118

Multiple Choice

When computing the rate of return from selling an investment, the number of years between the present and future cash flows is an important factor in determining

• A) the annual rate earned.
• B) the annual payments required.
• C) whether the present value or the future value is a cash inflow.
• D) whether the present value or the future value is a cash outflow.

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Definitions:

Radial Cam

A cam in which the follower moves radially relative to the cam center, translating rotational motion into linear motion.

Cylindrical Cam

A rotating cylinder used in machinery to convert rotational movement into linear movement of a follower.

Drum Cam

A rotating component designed to convert rotary motion into linear motion, typically featuring a cylindrical shape with a specific cam profile.

Cylindrical Cam

A rotating cylinder designed to convert rotary motion into linear motion of a follower by means of a contoured surface.