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:

Level Of Needs

Refers to the hierarchy of human needs ranging from basic physiological ones to self-fulfillment, as per Abraham Maslow's theory.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as the highest need in Maslow's hierarchy of needs.

Maslow Hierarchy

A psychological theory proposed by Abraham Maslow that categorizes human needs into a five-tier model, from basic physiological needs to self-actualization.

Self-Actualization Needs

The highest level in Maslow's hierarchy of needs, pertaining to the realization of an individual's potential, self-fulfillment, and personal growth.