Nonfinancial Information That Management Might Evaluate in Making a Decision

question 175

Multiple Choice

Nonfinancial information that management might evaluate in making a decision would not include

• A) employee turnover.
• B) contribution margin.
• C) the environment.
• D) the corporate profile in the community.

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Definitions:

Present Value

The today's value of money expected or a sequence of monetary flows in the future, determined by a particular rate of return.

Compound Interest

Interest calculated on the initial principal of a deposit or loan, which also includes all of the accumulated interest from previous periods on a deposit or loan.

Net Present Value

A financial metric that calculates the present value of all future cash flows produced by an investment, minus the initial investment cost, to evaluate its profitability.

Earnings Rate

The rate of return on an investment or project, often expressed as a percentage of the investment's cost.