Which of the Following Formulas Is Used to Calculate the Present

question 31

Multiple Choice

Which of the following formulas is used to calculate the present value index?

• A) Total present value of net cash flow / Equal annual net cash flows
• B) Amount to be invested / Total present value of net cash flow
• C) Equal annual net cash flows / Total present value of net cash flow
• D) Total present value of net cash flow / Amount to be invested

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Definitions:

Corporate Leadership

Individuals or groups at the highest level of management within a company, pivotal in setting ethical standards, cultural tone, and strategic direction.

Business for Social Responsibility

An organization and movement that works with businesses to create a just and sustainable world by encouraging them to integrate social and environmental responsibility into their operations.

Dumping

The practice of selling goods in a foreign market at a price lower than their normal value, often as a means of driving out competition or disposing of surplus stock.

Anticompetitive

Practices or policies that restrict or restrain competition in a market, often considered unfair or unethical.