Long-Range Financial Planning for a Firm Usually Includes an Analysis

question 205

Multiple Choice

Long-range financial planning for a firm usually includes an analysis of the next:

• A) 6 to 12 months.
• B) 1 to 2 years.
• C) 2 to 5 years.
• D) 5 to 10 years.
• E) 10 to 20 years.

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Definitions:

Financial Return

The profit or loss generated on an investment over a particular period, expressed as a percentage of the investment's initial cost.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Present Value

The present value of a future amount of money or series of cash flows, discounted at a certain rate of return.

Cash Flows

The total amount of money being transferred into and out of a business, particularly in the context of operating, investing, and financing activities.