All of the Following Are Necessary to Compute the Future

question 17

Multiple Choice

All of the following are necessary to compute the future value of a single amount except the

• A) interest rate.
• B) number of periods.
• C) principal.
• D) maturity value.

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Definitions:

Net Cash Flow

The amount of cash generated or used by a company in a specific period, calculated as cash received minus cash spent.

Operating Income

Profit realized from a business's core operations, excluding deductions of interest and taxes.

Cash Payback

A method used to evaluate the investment efficiency or the time period required to recoup the cost of an investment in cash flows.

Automatic Insertion Machine

Machinery used in manufacturing processes to automatically place components onto printed circuit boards or into other assembly units.