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Which One of the Following Statements Is True

question 15

Multiple Choice

Which one of the following statements is true?


Definitions:

Working Capital Investment

Funds used to finance day-to-day business operations, such as inventory purchase and accounts receivable.

Discount Rate

The interest rate used to discount future cash flows to their present values.

Net Present Value

The gap between the present worth of money coming in and going out over an established duration.

Pretax Return

The income or profit of a company before income tax expenses are deducted.

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