The Present Value Index Is Computed Using Which of the Following

question 83

Multiple Choice

The present value index is computed using which of the following formulas?

• A) Amount to be invested/Average rate of return
• B) Total present value of net cash flow/Amount to be invested
• C) Total present value of net cash flow/Average rate of return
• D) Amount to be invested/Total present value of net cash flow

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Definitions:

Histrionic

Relating to an excessive display of emotion or seeking of attention.

Schizotypal

A personality disorder characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.

Compulsion

A compelling desire to act in a specific manner, even if it goes against what one consciously wants.

Recurring

Recurring means occurring repeatedly or periodically, often with a consistent pattern or interval.