Sarah Uses a Card Issued by Northend Bank for All

question 34

Multiple Choice

Sarah uses a card issued by Northend Bank for all her purchases. Her transactions are cashless, and the purchase amount is immediately withdrawn from her bank account. In this case, Sarah uses a _____.

• A) credit card
• B) debit card
• C) prepaid card
• D) charge card

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Definitions:

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Discounted Payback Period

The time it takes for an investment to generate cash flows to recover its initial cost, accounting for the time value of money.

Cash Inflows

The total amount of money being transferred into a business, project, or financial product, typically measured within a specific period.

Rate Of Return

A financial return or setback experienced in an investment over a fixed period, denoted as a percentage of the original investment value.