How Many Years of Weather Data Are Collected to Generate

question 157

Multiple Choice

How many years of weather data are collected to generate the climate information needed to identify climate regions?

• A) 5
• B) 10
• C) 15
• D) 30
• E) 50

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Definitions:

IRR

The Internal Rate of Return is a financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

NPV

Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the initial investment from the present value of cash inflows.

AAR

Average Annual Return; calculating the mean annual return of an investment over a specified time period.

Discounted Payback

An investment appraisal method that calculates the time required to break even in present value terms, factoring in the time value of money.